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Wage Differentials in Brazilian Manufacturing

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  • Jorge Saba Arbache

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Abstract

This paper empirically investigates wage differentials for Brazilian manufacturing sector using micro-data analysis. We estimate cross-sectional wage equations including human capital variables, occupation, region, work-card possession, personal characteristics, among others, and using a more accurate estimation procedure proposed by Haisken-DeNew and Schmidt (1997). Compared to previous studies for Brazil, our results show a substantial drop in the non-explained wage dispersion. Our major finding is that wage determination seems to be a result of a mix of factors such as human capital, unmeasured abilities, efficiency wages, rent-sharing, and discrimination. However, contrasting with previous results which strongly support the importance of segmentation in wage determination, our results indicate that competitive explanations seem to play the most relevant role for understanding wage differentials.

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Bibliographic Info

Paper provided by Department of Economics, University of Kent in its series Studies in Economics with number 9705.

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Date of creation: Jun 1997
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Handle: RePEc:ukc:ukcedp:9705

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Postal: Department of Economics, University of Kent at Canterbury, Canterbury, Kent, CT2 7NP
Phone: +44 (0)1227 764000
Fax: +44 (0)1227 827850
Web page: http://www.ukc.ac.uk/economics/

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Keywords: Wage differentials; wage determination; manufacturing; Brazil;

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Cited by:
  1. Jorge Saba Arbache, 1998. "The Impact of Unions on Wages in Brazilian Manufacturing," Studies in Economics 9805, Department of Economics, University of Kent.
  2. Arbache, Jorge Saba & Carneiro, Francisco Galrao, 1999. "Unions and Interindustry Wage Differentials," World Development, Elsevier, vol. 27(10), pages 1875-1883, October.

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