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Falling urban wage premium and inequality trends: evidence for Brazil

Author

Listed:
  • de Oliveira Cruz , Bruno

    () (IPEA)

  • Naticchioni , Paolo

    (University of Cassino, Sapienza University)

Abstract

In this paper, we use data from the National Household Survey (PNAD) for Brazil to investigate the dynamics of the urban wage premium and the relationship between the urban wage premium and inequality trends, and we find two main results. First, we find a decreasing urban wage premium over the period 2002-2009 using both OLS and quantile regression. Second, we show that the fall in the urban wage premium is more pronounced at the 90th percentile than at the 10th percentile. This finding suggests that the falling urban wage premium has contributed to the reduction in inequality observed in Brazil in the last decade.

Suggested Citation

  • de Oliveira Cruz , Bruno & Naticchioni , Paolo, 2012. "Falling urban wage premium and inequality trends: evidence for Brazil," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 24, pages 91-113.
  • Handle: RePEc:ris:invreg:0005
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    References listed on IDEAS

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    Cited by:

    1. Appleton, Simon & Song, Lina & Xia, Qingjie, 2014. "Understanding Urban Wage Inequality in China 1988–2008: Evidence from Quantile Analysis," World Development, Elsevier, vol. 62(C), pages 1-13.
    2. Philipp Ehrl, 2014. "Task trade and the employment pattern: the offshoring and onshoring of Brazilian firms," Working Papers 151, Bavarian Graduate Program in Economics (BGPE).

    More about this item

    Keywords

    Urban Wage Premium; Wage Inequality; Brazil;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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