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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Paper provided by Department of Economics, University of Kent in its series Studies in Economics with number
9705.
Length: Date of creation: Jun 1997 Date of revision: Handle: RePEc:ukc:ukcedp:9705
Contact details of provider: 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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Find related papers by JEL classification: J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Private Pensions J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
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