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The Brazilian wage curve: new evidence from the National Household Survey

Author

Listed:
  • Badi H. Baltagi

    () (Syracuse University)

  • Bartlomiej Rokicki

    () (University of Warsaw
    University of Illinois)

  • Kênia Barreiro Souza

    () (University of Illinois
    CEDEPLAR/UFMG)

Abstract

Abstract This paper reconsiders the Brazilian wage curve using individual data from the National Household Survey at 27 Federative Units over the period 2002–2009. We find evidence in favor of the Brazilian wage curve with an unemployment elasticity of −0.08. We also find that males in Brazil are significantly more responsive to local unemployment rates (−0.13) than their female counterparts. In fact, we find that the unemployment elasticity for women is statistically insignificant. Applying gender-specific unemployment rates, the elasticity for men decreases to −0.09, while the elasticity for women remains statistically insignificant. This paper also finds that the estimates for Brazilian wage curve are completely different for the case of formal and informal workers.

Suggested Citation

  • Badi H. Baltagi & Bartlomiej Rokicki & Kênia Barreiro Souza, 2017. "The Brazilian wage curve: new evidence from the National Household Survey," Empirical Economics, Springer, vol. 53(1), pages 267-286, August.
  • Handle: RePEc:spr:empeco:v:53:y:2017:i:1:d:10.1007_s00181-016-1105-5
    DOI: 10.1007/s00181-016-1105-5
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    Cited by:

    1. Ana Barufi & Eduardo Haddad & Peter Nijkamp, 2016. "A comprehensive analysis of the wage curve in Brazil: Non-linearities, urban size, and the spatial dimension," ERSA conference papers ersa16p279, European Regional Science Association.

    More about this item

    Keywords

    Wage curve; Fixed effects; Regional labor markets; Household Surveys; Informal workers;

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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