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Regional Imbalances and Market Potential in Brazil

  • Pedro Amaral
  • Mauro Lemos
  • Rodrigo Sim�es
  • Fl�via Chein

Abstract This paper estimates the effects of market potential on regional wage imbalances between Brazilian municipalities. Using data from the 1980, 1991 and 2000 Brazilian Census, which render 3,630 comparable municipality areas, we estimate the NEG's wage equation using a spatial panel data model accounting for endogeneity. Our results show new evidence of a strong relationship between market potential and wages, indicating that regional attributes, as well as individual, are correlated with wages and their regional disparities. Inégalités régionales et potentiel commercial au Brésil RÉSUMÉ La présente communication évalue les effets du potentiel commercial des inégalités salariales régionales entre différentes municipalités au Brésil. Sur la base de données extraites des recensements effectués en 1980, 1991 et 2000 au Brésil, permettant de comparer 3,630 municipalités, nous sommes en mesure d'estimer l’équation salariale de NEG en utilisant un modèle de données de panel spatial, en tenant compte de l'endogénéité. Nos résultats fournissent de nouvelles informations sur l'existence de rapports étroits entre le potentiel commercial et les salaires, indiquant la corrélation entre les attributs, tant régionaux qu'individuels, et les salaires ainsi que leurs disparités régionales. Desequilibrios regionales y potencial de mercado en Brasil EXTRACTO Este trabajo estima los efectos del potencial de mercado sobre los desequilibrios salariales regionales entre municipalidades brasileñas. Utilizando datos extraídos de los censos brasileños de 1980, 1991 y 2000, que incluyen 3630 áreas municipales comparables, estimamos la ecuación salarial de NEG empleando un modelo espacial de datos de panel que tiene en cuenta la endogeneidad. Nuestros resultados muestran nueva evidencia de una fuerte relación entre el potencial de mercado y los salarios, indicando que los atributos regionales, así como los individuales, se correlacionan con los salarios y sus disparidades regionales.

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Article provided by Taylor & Francis Journals in its journal Spatial Economic Analysis.

Volume (Year): 5 (2010)
Issue (Month): 4 ()
Pages: 463-482

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Handle: RePEc:taf:specan:v:5:y:2010:i:4:p:463-482
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  1. Magno Vamberto Batista da Silva & Raul da Mota Silveira Neto, 2005. "Determinantes Da Localização Industrial No Brasil E Geografia Econômica: Evidências Para O Período Pós-Real," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33th Brazilian Economics Meeting] 116, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
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  8. Steven Brakman & Harry Garretsen & Marc Schramm, 2000. "The Empirical Relevance of the New Economic Geography: Testing for a Spatial Wage Structure in Germany," CESifo Working Paper Series 395, CESifo Group Munich.
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