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Segmentation in the Brazilian Labor Market

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  • Fernando Botelho
  • Vladimir Ponczek

Abstract

This article measures the degree of segmentation in the Brazilian labor market. Controlling for observable and unobservable characteristics, workers earn more in the formal sector, which supports the segmentation hypothesis. We break down the degree of segmentation by socioeconomic attributes to identify the groups where this phenomenon is more prevalent. We also investigate the robustness of our findings to the inclusion of self-employed individuals.

Suggested Citation

  • Fernando Botelho & Vladimir Ponczek, 2011. "Segmentation in the Brazilian Labor Market," Economic Development and Cultural Change, University of Chicago Press, vol. 59(2), pages 437-463.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/657127
    DOI: 10.1086/657127
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    10. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-444, June.
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