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The Structure of Worker Compensation in Brazil, With a Comparison to France and the United States

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  • Filho, Naerico Aquino Menezes
  • Muendler, Marc-Andreas
  • Ramey, Garey

Abstract

We employ a comprehensive linked employer-employee data set for Brazil to analyze wage determinants and compare results to Abowd, Kramarz, Margolis and Troske (2001) for French and U.S. manufacturing. While returns to human capital variables in Brazilian manufacturing exceed those of the other countries, occupation and gender differentials are similar. The worker characteristics component of individual compensation accounts for much of the greater wage inequality in Brazil, but the establishment-fixed component has scant explanatory power. Thus, firm- or industry-level factors have little scope for explaining the differences in wage inequality. Brazil's wage structure closely resembles that of France, a country with some similarity in labor-market institutions.

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Bibliographic Info

Paper provided by Department of Economics, UC San Diego in its series University of California at San Diego, Economics Working Paper Series with number qt8pr105rg.

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Date of creation: 26 Nov 2006
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Handle: RePEc:cdl:ucsdec:qt8pr105rg

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Keywords: Wage structure; wage inequality; linked employer-employee data; formal and informal employment; selectivity; Brazil;

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  1. John M. Abowd & John C. Haltiwanger & Julia I. Lane, 2004. "Integrated Longitudinal Employee-Employer Data for the United States," Longitudinal Employer-Household Dynamics Technical Papers 2004-02, Center for Economic Studies, U.S. Census Bureau.
  2. Mizala, Alejandra & Romaguera, Pilar, 1998. "Wage Differentials and Occupational Wage Premia: Firm-Level Evidence for Brazil and Chile," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(2), pages 239-57, June.
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