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Segmentation in the Brazilian labor market

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  • Botelho, Fernando
  • Ponczek, Vladimir Pinheiro

Abstract

This paper 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 socio-economic attributes to identify the groups where this phenomenon is more prevalent. We investigate the robustness of our findings to the inclusion of self-employed individuals, and apply a two-stage panel probit model using the self-selection correction strategy to investigate a potential weakness of the fixed-effects estimator

Suggested Citation

  • Botelho, Fernando & Ponczek, Vladimir Pinheiro, 2007. "Segmentation in the Brazilian labor market," Textos para discussão 231, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    • Handle: RePEc:fgv:eesptd:231
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