The aim of this paper is to provide empirical evidences of compensating wage differentials for Brazilian manufacturing firms. This theory states that higher injury risk firms would pay higher wages in order to attract workers – it implies a tradeoff between wages and job amenities. The empirical evidences of this paper are similar to stylized facts of the literature: omitted variables bias provides underestimated values for the injury risks coefficient, but after controlling the unobserved heterogeneity of workers the coefficient becomes positive and significant. In addition, this paper provides estimations from alternative models like instrumental variables and firms fixed effects.
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Paper provided by Universidade Federal do Paraná, Department of Economics in its series Working Papers with number
0061.
Length: 19 pages Date of creation: 2007 Date of revision: Handle: RePEc:fup:wpaper:0061
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