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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
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    File URL: http://dx.doi.org/10.1086/657127
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    8. Magnac, Th, 1991. "Segmented or Competitive Labor Markets," Econometrica, Econometric Society, vol. 59(1), pages 165-187, January.
    9. Guillermo E. Perry & William F. Maloney & Omar S. Arias & Pablo Fajnzylber & Andrew D. Mason & Jaime Saavedra-Chanduvi, 2007. "Informality : Exit and Exclusion," World Bank Publications, The World Bank, number 6730, April.
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    Cited by:

    1. Aysit Tansel & Halil Ibrahim Keskin & Zeynel Abidin Ozdemir, 2015. "Is There An Informal Employment Wage Penalty In Egypt?," Working Papers 2015/14, Turkish Economic Association.
    2. Olivier Bargain & Prudence Kwenda, 2014. "The Informal Sector Wage Gap: New Evidence Using Quantile Estimations on Panel Data," Economic Development and Cultural Change, University of Chicago Press, vol. 63(1), pages 117-153.
    3. Paula Herrera-Idárraga & Enrique López-Bazo & Elisabet Motellón, 2015. "Double Penalty in Returns to Education: Informality and Educational Mismatch in the Colombian Labour Market," Journal of Development Studies, Taylor & Francis Journals, vol. 51(12), pages 1683-1701, December.
    4. Araujo, Luis Fernando Oliveira de & Ponczek, Vladimir Pinheiro, 2012. "Informal wages in an economy with active labor courts," Textos para discussão 294, FGV/EESP - Escola de Economia de São Paulo, Getulio Vargas Foundation (Brazil).
    5. repec:iza:izawol:journl:y:2017:n:394 is not listed on IDEAS
    6. Alan de Brauw & Daniel O. Gilligan & John Hoddinott & Shalini Roy, 2015. "Bolsa Família and Household Labor Supply," Economic Development and Cultural Change, University of Chicago Press, vol. 63(3), pages 423-457.
    7. Casal, María del Pilar & Barham, Bradford L., 2013. "Motherhood wage penalties and labour market segmentation: Evidence from Argentina," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    8. Haanwinckel, Daniel & Soares, Rodrigo R., 2016. "Workforce Composition, Productivity, and Labor Regulations in a Compensating Differentials Theory of Informality," IZA Discussion Papers 9951, Institute for the Study of Labor (IZA).
    9. Gerard, Francois & Gonzaga, Gustavo, 2016. "Informal Labor and the Efficiency Cost of Social Programs: Evidence from the Brazilian Unemployment Insurance Program," CEPR Discussion Papers 11485, C.E.P.R. Discussion Papers.
    10. Paula Herrera-Idárraga & Enrique López-Bazo & Elisabet Motellón, 2012. "Informality and overeducation in the labor market of a developing country," Working Papers XREAP2012-20, Xarxa de Referència en Economia Aplicada (XREAP), revised Nov 2012.
    11. Mattos, Enlinson & Orellano, Veronica & Pazello, elaine, 2009. "A Substituição de Trabalhadores como Instrumento para Redução de Gastos com Salários: Evidências para a Indústria Paulista," Revista Brasileira de Economia - RBE, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 63(2), June.
    12. Dang, Thang, 2017. "Education as Protection? The Effect of Schooling on Non-Wage Compensation in a Developing Country," MPRA Paper 79223, University Library of Munich, Germany.
    13. World Bank, 2009. "Federative Republic of Brazil - Social Insurance and Labor Supply : Assessing Incentives and Redistribution," World Bank Other Operational Studies 12667, The World Bank.
    14. de Baldini Rocha, Maúna Soares & Ponczek, Vladimir, 2011. "The effects of adult literacy on earnings and employment," Economics of Education Review, Elsevier, vol. 30(4), pages 755-764, August.
    15. Ana Barufi & Eduardo Haddad & Peter Nijkamp, 2016. "A comprehensive analysis of the wage curve in Brazil: Non-linearities, urban size, and the spatial dimension," ERSA conference papers ersa16p279, European Regional Science Association.
    16. Luis Araujo & Vladimir Ponczek, 2009. "Modeling Labor Market Segmentation," Working Papers 09_04, Universidade de São Paulo, Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto.
    17. François Gerard & Gustavo Gonzaga, 2013. "Informal Labor and the Cost of Social Programs: Evidence from 15 Years of Unemployment Insurance in Brazil," Textos para discussão 608, Department of Economics PUC-Rio (Brazil).

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