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Urban Attributes and Wage Disparities in Brazil: A Multilevel Hierarchical Model

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  • Gustavo Fontes
  • Rodrigo Simoes
  • A.M. Hermeto Camilo De Oliveira

Abstract

Fontes G. G., Simoes R. F. and Hermeto Camilo de Oliveira A. M. Urban attributes and wage disparities in Brazil: a multilevel hierarchical model, Regional Studies. This paper examines the effects of urban scale and productive structure on individual wage levels in Brazilian cities and metropolitan areas in 1990 and 2000. The estimation through hierarchical linear models enabled the inclusion of variables in different levels (individual and urban) and the decomposition of total wage variance. The results showed significant and huge wage disparities among workers who share similar personal attributes but live in different regions of the country. In addition, the disparities persisted from 1990 to 2000. Finally, the results provided evidence that local economic and labour market factors played an important role in wage determination.

Suggested Citation

  • Gustavo Fontes & Rodrigo Simoes & A.M. Hermeto Camilo De Oliveira, 2010. "Urban Attributes and Wage Disparities in Brazil: A Multilevel Hierarchical Model," Regional Studies, Taylor & Francis Journals, vol. 44(5), pages 595-607.
    • Handle: RePEc:taf:regstd:v:44:y:2010:i:5:p:595-607
    DOI: 10.1080/00343400902926367
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    1. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173.
    2. International Monetary Fund, 2004. "Trade and Industrial Location with Heterogeneous Labor," IMF Working Papers 2004/103, International Monetary Fund.
    3. Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent, 2008. "Spatial wage disparities: Sorting matters!," Journal of Urban Economics, Elsevier, vol. 63(2), pages 723-742, March.
    4. Eustáquio J. Reis & Paulo Tafner & Márcia Pimentel & Rodrigo V. Serra & Luis Otávio Reiff & Kepler Magalhães & Mérida Medina, 2005. "O PIB dos Municípios Brasileiros: Metodologia e Estimativas - 1970-1996," Discussion Papers 1064, Instituto de Pesquisa Econômica Aplicada - IPEA.
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    Cited by:

    1. Emerson Baptista & Bernardo Lanza Queiroz, 2019. "The relation between cardiovascular mortality and development: Study for small areas in Brazil, 2001–2015," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 41(51), pages 1437-1452.
    2. Ana Maria Bonomi Barufi & Eduardo Amaral Haddad & Peter Nijkamp, 2016. "Industrial scope of agglomeration economies in Brazil," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(3), pages 707-755, May.
    3. Rafael Alvarado & Miguel Atienza, 2014. "The role of market access and human capital in regional wage disparities: Empirical evidence for Ecuador," Documentos de Trabajo en Economia y Ciencia Regional 50, Universidad Catolica del Norte, Chile, Department of Economics, revised Mar 2014.
    4. 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.
    5. Britto, Gustavo & Hermeto, Ana María & Scherrer Mendes, Philipe, 2020. "Brazilian industry and knowledge absorption: internal and external company determinants," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    6. Penelope B. Prime & Donald Grimes & Mary Beth Walker, 2016. "Exploring Wage Determination by Education Level," Economic Development Quarterly, , vol. 30(3), pages 191-202, August.
    7. GRIES, Thomas & PALNAU, Irene, 2016. "Distress Beyond Poverty: Spatial Patterns And Geographic Aspects Of Vulnerability In Brazil," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 16(2), pages 53-70.

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