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Falling Urban Wage Premium Andinequality Trends: Evidence For Brazil

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  • BRUNO DE OLIVEIRA CRUZ
  • PAULO NATICCHIONI

Abstract

In this paper, we use data from the National Household Survey (PNAD) for Brazil to investigate the dynamics of the urban wage premium and the relationship between the urban wage premium and inequality trends, and we find two main results. First, we find a decreasing urban wage premium over the period 2002-2009 using both OLS and quantile regression. Second, we show that the fall in the urban wage premium is more pronounced at the 90th percentile than at the 10th percentile. This finding suggests that the falling urban wage premium has contributed to the reduction in inequality observed in Brazil in the last decade.
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Suggested Citation

  • Bruno De Oliveira Cruz & Paulo Naticchioni, 2014. "Falling Urban Wage Premium Andinequality Trends: Evidence For Brazil," Anais do XL Encontro Nacional de Economia [Proceedings of the 40th Brazilian Economics Meeting] 168, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    • Handle: RePEc:anp:en2012:168
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    File URL: http://www.anpec.org.br/encontro/2012/inscricao/files_I/i9-cdb1f7bbfa05649963b695631a359e82.docx
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    Cited by:

    1. is not listed on IDEAS
    2. Brändle, Tobias, 2024. "Unions and Collective Bargaining: The Influence on Wages, Employment and Firm Survival," GLO Discussion Paper Series 1457, Global Labor Organization (GLO).
    3. Philipp Ehrl, 2018. "Task trade and employment patterns: The offshoring and onshoring of Brazilian firms," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 27(3), pages 235-266, April.
    4. Appleton, Simon & Song, Lina & Xia, Qingjie, 2014. "Understanding Urban Wage Inequality in China 1988–2008: Evidence from Quantile Analysis," World Development, Elsevier, vol. 62(C), pages 1-13.
    5. Carlos Rodríguez‐Castelán & Luis Felipe López‐Calva & Nora Lustig & Daniel Valderrama, 2022. "Wage inequality in the developing world: Evidence from Latin America," Review of Development Economics, Wiley Blackwell, vol. 26(4), pages 1944-1970, November.
    6. Eloiza Almeida & Veneziano Araújo & Solange Gonçalves, 2025. "The urban wage premium in a labor market with informality," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 74(2), pages 1-28, June.
    7. Almeida, Eloiza R.F. & Araújo, Veneziano & Gonçalves, Solange L., 2022. "Urban wage premium for women: evidence across the wage distribution," World Development, Elsevier, vol. 159(C).

    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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