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Segmentation in the Brazilian Labor Market

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  • Fernando Botelho
  • Vladimir Ponczek

Abstract

This article measures the degree of segmentation in the Brazilian labor market. Controlling for observable and unobservable characteristics, workers earn more in the formal sector, which supports the segmentation hypothesis. We break down the degree of segmentation by socioeconomic attributes to identify the groups where this phenomenon is more prevalent. We also investigate the robustness of our findings to the inclusion of self-employed individuals.

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File URL: http://www.jstor.org/stable/pdfplus/10.1086/657127
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File URL: http://www.jstor.org/stable/full/10.1086/657127
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Bibliographic Info

Article provided by University of Chicago Press in its journal Economic Development and Cultural Change.

Volume (Year): 59 (2011)
Issue (Month): 2 ()
Pages: 437 - 463

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Handle: RePEc:ucp:ecdecc:doi:10.1086/657127

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References

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  1. Maloney, William F., 2004. "Informality Revisited," World Development, Elsevier, vol. 32(7), pages 1159-1178, July.
  2. Amadeo, Edward Joaquim & Gill, Indermit S. & Neri, Marcelo Cortes, 2000. "Brazil: The Pressure Points in Labor Legislation," Economics Working Papers (Ensaios Economicos da EPGE) 395, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  3. Gabriel Ulyssea, 2005. "Informalidade no Mercado de Trabalho Brasileiro : Uma Resenha da Literatura," Discussion Papers 1070, Instituto de Pesquisa Econômica Aplicada - IPEA.
  4. Magnac, Th, 1991. "Segmented or Competitive Labor Markets," Econometrica, Econometric Society, vol. 59(1), pages 165-87, January.
  5. Maloney, William F, 1999. "Does Informality Imply Segmentation in Urban Labor Markets? Evidence from Sectoral Transitions in Mexico," World Bank Economic Review, World Bank Group, vol. 13(2), pages 275-302, May.
  6. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
  7. Leontaridi, Marianthi Rannia, 1998. " Segmented Labour Markets: Theory and Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 12(1), pages 63-101, February.
  8. Pratap, Sangeeta & Quintin, Erwan, 2006. "Are labor markets segmented in developing countries? A semiparametric approach," European Economic Review, Elsevier, vol. 50(7), pages 1817-1841, October.
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Citations

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Cited by:
  1. Paula Herrera & Enrique López-Bazo & Elisabet Motellón, 2013. "“Informality and Overeducation in the Labor Market of a Developing Country”," IREA Working Papers 201305, University of Barcelona, Research Institute of Applied Economics, revised Apr 2013.
  2. Kerr, Andrew & Teal, Francis J., 2012. "The Determinants of Earnings Inequalities: Panel Data Evidence from South Africa," IZA Discussion Papers 6534, Institute for the Study of Labor (IZA).
  3. Olivier Bargain & Prudence Kwenda, 2013. "The Informal Sector Wage Gap: New Evidence using Quantile Estimations on Panel Data," AMSE Working Papers 1360, Aix-Marseille School of Economics, Marseille, France, revised Jun 2013.
  4. World Bank, 2009. "Federative Republic of Brazil - Social Insurance and Labor Supply : Assessing Incentives and Redistribution," World Bank Other Operational Studies 12667, The World Bank.
  5. de Baldini Rocha, Maúna Soares & Ponczek, Vladimir, 2011. "The effects of adult literacy on earnings and employment," Economics of Education Review, Elsevier, vol. 30(4), pages 755-764, August.
  6. Enlinson Mattos & Veronica Orellano & elaine Pazello, 2009. "A Substituição de Trabalhadores como Instrumento para Redução de Gastos com Salários: Evidências para a Indústria Paulista," Revista Brasileira de Economia, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 63(2), pages 135-152, June.
  7. Paula Herrera & Enrique López-Bazo & Elisabet Motellón, 2013. "“Double Penalty in Returns to Education: Informality and Educational Mismatch in the Colombian Labour market”," IREA Working Papers 201307, University of Barcelona, Research Institute of Applied Economics, revised May 2013.
  8. Luis Araujo & Vladimir Ponczek, 2009. "Modeling Labor Market Segmentation," Working Papers 09_04, Universidade de São Paulo, Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto.
  9. Olivier Bargain & Prudence Kwenda, 2013. "The Informal Sector Wage Gap: New Evidence using Quantile Estimations on Panel Data," Working Papers halshs-00967324, HAL.
  10. François Gerard & Gustavo Gonzaga, 2013. "Informal Labor and the Cost of Social Programs: Evidence from 15 Years of Unemployment Insurance in Brazil," Textos para discussão 608, Department of Economics PUC-Rio (Brazil).
  11. Araujo, Luis & Ponczek, Vladimir P., 2012. "Informal wages in an economy with active labor courts," Textos para discussão 294, Escola de Economia de São Paulo, Getulio Vargas Foundation (Brazil).

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