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Inter-Industry wage differentials and earnings inequality in Brazil

Author

Listed:
  • Armando Castelar
  • Lauro Ramos

Abstract

This paper shows that there is a large inter-industry wage dispersion in the Brazilian labor market, that persists after controlling for differences in workers’ productive attributes and job characteristics. The wage structure is robust over time, with no evidence that wage premiums can be imputed to differences in job quality, workers’ heterogeneity, discriminatory practices, short-run excess demand in specific sectors, or changes in the macroeconomic and political settings. The contribution of labor market segmentation to wage inequality is estimated to be in the 7-11 percent interval.

Suggested Citation

  • Armando Castelar & Lauro Ramos, 1994. "Inter-Industry wage differentials and earnings inequality in Brazil," Estudios de Economia, University of Chile, Department of Economics, vol. 21(esp Year ), pages 79-111, November.
    • Handle: RePEc:udc:esteco:v:21:y:1994:i:esp:p:79-111
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    Citations

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    Cited by:

    1. Eduardo Pontual Ribeiro & Jane H. Leuthold, 1999. "Preference Structures and the Excess Burden of Income Taxes in Brazil," Public Finance Review, , vol. 27(3), pages 243-261, May.
    2. Soares, Rodrigo Reis & Gonzaga, Gustavo, 1999. "Determinação De Salários No Brasil: Dualidade Ou Não-Linearidade No Retorno À Educação?," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 19(2), November.
    3. Jorge Saba Arbache, 1998. "How do Economic Reforms affect the Structure of Wages? The Case of Brazilian Manufacturing, 1984-1996," Studies in Economics 9817, School of Economics, University of Kent.
    4. Ricardo Freguglia & Naercio Menezes-Filho, 2012. "Inter-regional wage differentials with individual heterogeneity: evidence from Brazil," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(1), pages 17-34, August.
    5. Mehta, Aashish & Sun, Wei, 2013. "Does Industry Affiliation Influence Wages? Evidence from Indonesia and the Asian Financial Crisis," World Development, Elsevier, vol. 51(C), pages 47-61.
    6. Zhao Chen & Ming Lu & Guanghua Wan, 2010. "Inter-Industry Wage Differentials: An Increasingly Important Contributor to Urban China Income Inequality," Global COE Hi-Stat Discussion Paper Series gd09-130, Institute of Economic Research, Hitotsubashi University.
    7. Zhao Chen & Ming Lu & Hiroshi Sato, 2009. "Social Networks and Labor Market Entry Barriers: Understanding Inter-industrial Wage Differentials in Urban China," Global COE Hi-Stat Discussion Paper Series gd09-084, Institute of Economic Research, Hitotsubashi University.

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