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Segmentation in the Brazilian Labor Market

  • Fernando Botelho
  • Vladimir Ponczek

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.

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Article provided by University of Chicago Press in its journal Economic Development and Cultural Change.

Volume (Year): 59 (2011)
Issue (Month): 2 ()
Pages: 437 - 463

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Handle: RePEc:ucp:ecdecc:doi:10.1086/657127
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  1. Maloney, William, 2003. "Informality revisited," Policy Research Working Paper Series 2965, The World Bank.
  2. Maloney, William F, 1999. "Does Informality Imply Segmentation in Urban Labor Markets? Evidence from Sectoral Transitions in Mexico," World Bank Economic Review, World Bank Group, vol. 13(2), pages 275-302, May.
  3. Leontaridi, Marianthi Rannia, 1998. " Segmented Labour Markets: Theory and Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 12(1), pages 63-101, February.
  4. Magnac, Th, 1991. "Segmented or Competitive Labor Markets," Econometrica, Econometric Society, vol. 59(1), pages 165-87, January.
  5. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
  6. Pratap, Sangeeta & Quintin, Erwan, 2006. "Are labor markets segmented in developing countries? A semiparametric approach," European Economic Review, Elsevier, vol. 50(7), pages 1817-1841, October.
  7. Gabriel Ulyssea, 2005. "Informalidade no Mercado de Trabalho Brasileiro : Uma Resenha da Literatura," Discussion Papers 1070, Instituto de Pesquisa Econômica Aplicada - IPEA.
  8. Amadeo, Edward Joaquim & Gill, Indermit S. & Neri, Marcelo Cortes, 2000. "Brazil: The Pressure Points in Labor Legislation," Economics Working Papers (Ensaios Economicos da EPGE) 395, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
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