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Education, cost of living and regional wage inequality in Brazil

Author

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  • Carlos R. Azzoni
  • Luciana M.S. Servo

Abstract

The objective of this article is to analyze wage inequality among the 10 largest metropolitan regions in Brazil in the 1990s. We assess the extent to which worker characteristics (education, age, gender, race, position in the family) and job characteristics (occupational position, sector, experience) can explain wage inequality. The analysis is made both with regional-nominal and with regional-real wage data. In the second case regional price indexes are used to control for differences in cost of living among regions. Wage differentials in Brazil were slightly lowered when control variables were introduced, but the leftover inequality remained high. The results indicate that cost of living levels do have a role in explaining wage inequality in Brazil, but even after controlling for this factor, the remaining regional differentials are still important. Copyright Regional Science Association International (RSAI) Urbana, USA 2002

Suggested Citation

  • Carlos R. Azzoni & Luciana M.S. Servo, 2002. "Education, cost of living and regional wage inequality in Brazil," Review of Economic Design, Springer;Society for Economic Design, vol. 81(2), pages 157-175, April.
  • Handle: RePEc:spr:reecde:v:81:y:2002:i:2:p:157-175
    DOI: 10.1007/s101100200105
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    Cited by:

    1. Philippe De Vreyer & Gilles Spielvogel, 2005. "Spatial externalities between Brazilian municipios and their neighbours," Ibero America Institute for Econ. Research (IAI) Discussion Papers 123, Ibero-America Institute for Economic Research.
    2. Timmins, Christopher, 2006. "Estimating spatial differences in the Brazilian cost of living with household location choices," Journal of Development Economics, Elsevier, vol. 80(1), pages 59-83, June.
    3. repec:asg:wpaper:1029 is not listed on IDEAS
    4. Michael Beenstock & Daniel Felsenstein, 2008. "Regional Heterogeneity, Conditional Convergence and Regional Inequality," Regional Studies, Taylor & Francis Journals, vol. 42(4), pages 475-488.
    5. Ricardo Freguglia & Naercio Menezes-Filho, 2012. "Inter-regional wage differentials with individual heterogeneity: evidence from Brazil," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(1), pages 17-34, August.
    6. 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.
    7. Lage de Sousa, Filipe, 2010. "Regional manufacturing wages: dancing to the tune of trade shocks," LSE Research Online Documents on Economics 33500, London School of Economics and Political Science, LSE Library.
    8. Chauvin, Juan Pablo & Glaeser, Edward & Ma, Yueran & Tobio, Kristina, 2017. "What is different about urbanization in rich and poor countries? Cities in Brazil, China, India and the United States," Journal of Urban Economics, Elsevier, vol. 98(C), pages 17-49.
    9. Paula Herrera-Idárraga & Enrique López-Bazo & Elisabet Motellón, 2016. "Regional Wage Gaps, Education and Informality in an Emerging Country: The Case of Colombia," Spatial Economic Analysis, Taylor & Francis Journals, vol. 11(4), pages 432-456, October.
    10. Michael Beenstock & Daniel Felsenstein, 2010. "Marshallian theory of regional agglomeration," Papers in Regional Science, Wiley Blackwell, vol. 89(1), pages 155-172, March.
    11. Julio Romero, 2008. "Diferencias sociales y regionales en el ingreso laboral de las principales ciudades colombianas, 2001-2004," REVISTA DE ECONOMÍA DEL ROSARIO, UNIVERSIDAD DEL ROSARIO, November.
    12. repec:dau:papers:123456789/4395 is not listed on IDEAS
    13. Raul da Mota Silveira Neto & Ana Katarina Campelo, 2003. "O Perfil das Disparidades Regionais de Renda no Brasil: Evidências a Partir de Regressões Quantílicas para os Anos de 1992 e 2001," Anais do XXXI Encontro Nacional de Economia [Proceedings of the 31st Brazilian Economics Meeting] e11, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    14. Sergei Soares & Luciana M. Santos Servo & Jorge Saba Arbache, 2001. "O que (não) Sabemos sobre a Relação entre Abertura Comercial e Mercado de Trabalho no Brasil," Anais do XXIX Encontro Nacional de Economia [Proceedings of the 29th Brazilian Economics Meeting] 048, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    15. Chomitz, Kenneth M. & da Mata, Daniel & de Carvalho, Alexandre Ywata & Magalhaes, Joao Carlos, 2005. "Spatial dynamics of labor markets in Brazil," Policy Research Working Paper Series 3752, The World Bank.
    16. Carlos Roberto Azzoni & Aquiles Kalatzis, 2006. "Regional Differences in the Determinants of Investment Decisions of Private Firms in Brazil," ERSA conference papers ersa06p161, European Regional Science Association.
    17. Edyta Laszkiewicz, 2016. "Determinants Of Hourly Wages Inequality In Selected European Metropolises. The Results From The Multilevel Modelling," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 11(4), pages 853-869, December.
    18. Diana Lúcia Gonzaga da Silva & Carlos Roberto Azzoni, 2016. "Location and wages: the contribution of firm and worker effects in Brazil," Working Papers, Department of Economics 2016_41, University of São Paulo (FEA-USP).
    19. Alexandre Carvalho & Daniel da Mata & Kenneth M. Chomitz & João Carlos Magalhães, 2005. "Spatial Dynamics of Labor Markets in Brazil," Discussion Papers 1110, Instituto de Pesquisa Econômica Aplicada - IPEA.
    20. Michael Beenstock & Daniel Felsenstein, 2005. "Regional Heterogenity and Conditional Convergence," ERSA conference papers ersa05p307, European Regional Science Association.
    21. Juliana Ferraz Guimarães & Tiago Cavalcanti & Raul Silveira Neto, 2006. "Accounting For Labor Income Differences In Brazil: The Role Of Human Capital," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] 35, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    22. Jabrane Amaghouss & Aomar Ibourk, 2016. "Les inégalités dans le domaine de l’éducation au Maroc: Une approche spatial," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 28(5), pages 783-807, November.
    23. Michael Beenstock & Daniel Felsenstein, 2007. "Mobility and Mean Reversion in the Dynamics of Regional Inequality," International Regional Science Review, , vol. 30(4), pages 335-361, October.
    24. Aleksey Oshchepkov, 2007. "Are Interregional Wage Differentials in Russia Compensative?," Discussion Papers of DIW Berlin 750, DIW Berlin, German Institute for Economic Research.
    25. Jonathan T. Rothwell & Douglas S. Massey, 2015. "Geographic Effects on Intergenerational Income Mobility," Economic Geography, Clark University, vol. 91(1), pages 83-106, January.

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