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The Structure of Worker Compensation in Brazil, With a Comparison to France and the United States

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Listed author(s):
  • Menezes Filho, N. A.
  • Menezes Filho, N. A.

Abstract

We employ a comprehensive matched employer-employee data set for Brazil to analyze wage determinants and compare results to Abowd, Kramarz, Margolis and Troske (2001) for French and U.S. manufacturing. Returns to education and experience in Brazilian manufacturing exceed those of the other countries, while occupation differentials are similar. The gender differential in Brazilian and U.S. manufacturing coincides, and is considerably smaller than in France. Estimates are unaffected by selectivity of Brazilian workers into formal employment. The links between firm performance and wage components in Brazil resemble those of France. Worker characteristics have comparable explanatory power for manufacturing wage variability in the three countries but establishment-fixed effects explain relatively less of the Brazilian wage variation. Despite the inclusion of establishment effects, regressors predict at most sixty percent of wage variability in any Brazilian sector, suggesting that explanations for earnings variability ought to focus on worker characteristics, not establishment wage policies.

(This abstract was borrowed from another version of this item.)

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Paper provided by Insper Working Paper, Insper Instituto de Ensino e Pesquisa in its series Insper Working Papers with number wpe_78.

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Date of creation: Oct 2007
Handle: RePEc:ibm:ibmecp:wpe_78
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Find related papers by JEL classification:
  • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
  • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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  1. Gonzaga, Gustavo & Menezes Filho, Naercio & Terra, Cristina, 2006. "Trade liberalization and the evolution of skill earnings differentials in Brazil," Journal of International Economics, Elsevier, vol. 68(2), pages 345-367, March.
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  10. John J. Abowd & John Haltiwanger & Julia Lane, 2004. "Integrated Longitudinal Employer-Employee Data for the United States," American Economic Review, American Economic Association, vol. 94(2), pages 224-229, May.
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  17. Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January.
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  23. Schaffner, Julie Anderson, 1998. "Premiums to employment in larger establishments: evidence from Peru," Journal of Development Economics, Elsevier, vol. 55(1), pages 81-113, February.
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