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Determinação De Salários No Brasil: Dualidade Ou Não-Linearidade No Retorno À Educação?

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  • Soares, Rodrigo Reis
  • Gonzaga, Gustavo

Abstract

The objective of this paper is to test the existence of duality in the Brazilian labor market. The method af analysis is to evaluate to what extent one can observe wage differences among workers that are not explained by differences in their productive skil1s. Data from the annual Brazilian household survey (Pesquisa Nacional por Amostra de Domicílios - IBGE) from 1988 are analyzed according to the methodology proposed by Dickens and Lang (1985 and 1992), that endogenously determines the dual sectors based on a switching-regression model. The results suggest that there is no dualíty in the Brazilian labor market. Although the dual model does a better job in explaining wages than a linear competitive model, its performance is inferior to a competitive model with nonlinear returns to education. The evidence supports the idea that education is the main determinant of access to good jobs in Brazil.

Suggested Citation

  • Soares, Rodrigo Reis & Gonzaga, Gustavo, 1999. "Determinação De Salários No Brasil: Dualidade Ou Não-Linearidade No Retorno À Educação?," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 19(2), November.
    • Handle: RePEc:sbe:breart:v:19:y:1999:i:2:a:2779
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    References listed on IDEAS

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    1. Lam, David & Schoeni, Robert F, 1993. "Effects of Family Background on Earnings and Returns to Schooling: Evidence from Brazil," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 710-740, August.
    2. Dickens, William T & Lang, Kevin, 1985. "A Test of Dual Labor Market Theory," American Economic Review, American Economic Association, vol. 75(4), pages 792-805, September.
    3. repec:eee:labchp:v:2:y:1986:i:c:p:1183-1217 is not listed on IDEAS
    4. James J. Heckman & V. Joseph Hotz, 1986. "An Investigation of the Labor Market Earnings of Panamanian Males Evaluating the Sources of Inequality," Journal of Human Resources, University of Wisconsin Press, vol. 21(4), pages 507-542.
    5. Andrew C. Harvey, 1990. "The Econometric Analysis of Time Series, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 026208189x, December.
    6. Armando Castelar & Lauro Ramos, 1994. "Inter-Industry wage differentials and earnings inequality in Brazil," Estudios de Economia, University of Chile, Department of Economics, vol. 21(esp Year ), pages 79-111, November.
    7. Magnac, Th, 1991. "Segmented or Competitive Labor Markets," Econometrica, Econometric Society, vol. 59(1), pages 165-187, January.
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    1. Ana Heloisa da Costa Lemos & Veranise Jacubowski Correia Dubeux & Mario Couto Soares Pinto, 2011. "Employability of young managers: a question of merit or aristocracy?," Brazilian Business Review, Fucape Business School, vol. 8(1), pages 93-113, January.

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