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Wage Differentials in Brazil: Theory and Evidence

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  • J. S. Arbache

Abstract

The investigation of wage determination and wage differentials in developing countries has concentrated on the effects of human capital and different sources of segmentation associated with institutional arrangements and structural characteristics on earnings. In this article, we use micro-data for Brazil for the 1980s and 1990s to test several competitive theories, and models with segmentation explained by efficiency wages. We find that unmeasured abilities and efficiency wage models seem to play a role in wage determination, while compensating differentials and transitory difference theories were found to be irrelevant to wages formation.

Suggested Citation

  • J. S. Arbache, 2001. "Wage Differentials in Brazil: Theory and Evidence," Journal of Development Studies, Taylor & Francis Journals, vol. 38(2), pages 109-130.
    • Handle: RePEc:taf:jdevst:v:38:y:2001:i:2:p:109-130
    DOI: 10.1080/00220380412331322281
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    Citations

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    Cited by:

    1. Mauricio Bittencourt & Donald Larson & David Kraybill, 2010. "Regional Short-Run Effects Of Trade Liberalization In Brazil," Economic Systems Research, Taylor & Francis Journals, vol. 22(1), pages 65-85.
    2. Naércio Aquino Menezes-Filho & Marc-Andreas Muendler & Garey Ramey, 2008. "The Structure of Worker Compensation in Brazil, with a Comparison to France and the United States," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 324-346, May.
    3. Anthony Stair, 2007. "Marital Wage Premium or Ability Selection? The Case of Taiwan 1979-2003," Economics Bulletin, AccessEcon, vol. 10(15), pages 1-11.
    4. Mehta, Aashish & Sun, Wei, 2013. "Does Industry Affiliation Influence Wages? Evidence from Indonesia and the Asian Financial Crisis," World Development, Elsevier, vol. 51(C), pages 47-61.
    5. Moinsey, Allister & Polius, Tracy, 2011. "Trinidad and Tobago: inter-industry wage differentials," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    6. Valeria Cirillo, 2014. "Patterns of innovation and wage distribution. Do “innovative firms” pay higher wages? Evidence from Chile," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 4(2), pages 181-206, December.
    7. Valeria Cirillo & Matteo Sostero & Federico Tamagni, 2017. "Innovation and within-firm wage inequalities: empirical evidence from major European countries," Industry and Innovation, Taylor & Francis Journals, vol. 24(5), pages 468-491, July.
    8. Zhao Chen & Ming Lu & Hiroshi Sato, 2009. "Social Networks and Labor Market Entry Barriers: Understanding Inter-industrial Wage Differentials in Urban China," Global COE Hi-Stat Discussion Paper Series gd09-084, Institute of Economic Research, Hitotsubashi University.
    9. repec:ebl:ecbull:v:10:y:2007:i:15:p:1-11 is not listed on IDEAS
    10. Joaquim Ramos Silva & Carla Regina Ferreira Freire Guimarães, 2017. "Wage differentials in Brazil: Tourism vs. other service sectors," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1319606-131, January.
    11. Yang, Sheng-Ping & DeBeaumont, Ronald, 2010. "Pay as incentive or pay as reward? The case of Taiwan," Journal of Asian Economics, Elsevier, vol. 21(1), pages 76-86, February.
    12. Cimoli, Mario & Primi, Annalisa & Pugno, Maurizio, 2006. "A low-growth model: informality as a structural constraint," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    13. Zhao Chen & Ming Lu & Guanghua Wan, 2010. "Inter-Industry Wage Differentials: An Increasingly Important Contributor to Urban China Income Inequality," Global COE Hi-Stat Discussion Paper Series gd09-130, Institute of Economic Research, Hitotsubashi University.
    14. Paulo Aguiar do Monte, 2019. "Effort Level by Firm Size in a Developing Country," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(1), pages 73-87, March.

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