Further Evidence on Wage and Productivity Differentials in Brazil
AbstractThis paper discusses the relationship between the elasticities of wages and productivity with respect to human capital. The goal is to search if there is a distortion on the expected relationship between these two variables, given market forces and a selfish behavior by agents, as it is found in some Europeans countries. A general equilibrium, overlapping generation model that can capture the relationship between these two elasticities is presented. Two equations that emerge from this model are estimated, using data from RAIS and IBGE Pesquisa Industrial Annual for 2000. The results indicate that local labor market attenuates income inequality, transferring income from more qualified to less qualified workers, similarly to what happens in European labor markets.
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Bibliographic InfoPaper provided by Datamétrica Consultoria Econômica in its series Working Papers with number 34.
Length: 22 pages
Date of creation: 2003
Date of revision: 2003
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More information through EDIRC
Productivity; wages; general equilibrium;
Other versions of this item:
- Marcelo Eduardo A. da Silva & Alexandre Rands Barros, 2003. "Further Evidence on Wage and Productivity Differentials in Brazil," Anais do XXXI Encontro Nacional de Economia [Proceedings of the 31th Brazilian Economics Meeting] f37, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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