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

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  • Menezes Filho, N. A.
  • Menezes Filho, N. A.

Abstract

We employ comprehensive linked employer-employee data for Brazil to analyze wage determinants and compare results to Abowd et al. (2001) for French and U.S. manufacturing. While returns to human capital in Brazilian manufacturing exceed those of the other countries, occupation and gender differentials are similar. The worker-characteristics component accounts for much of the greater wage inequality in Brazil, but the establishment-fixed component has scant explanatory power. Thus, firm- or industry-level factors offer little scope for explaining the differences in wage inequality. Brazil's wage structure resembles that of France, a country with some similarity in labor market institutions. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
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  • Menezes Filho, N. A. & Menezes Filho, N. A., 2007. "The Structure of Worker Compensation in Brazil, With a Comparison to France and the United States," Insper Working Papers wpe_78, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
    • Handle: RePEc:ibm:ibmecp:wpe_78
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    Cited by:

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    2. Pedro S. Martins & Luiz A. Esteves, 2012. "Wages and Profits in Manufacturing Firms: Matched-Panel Evidence from Brazil," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 13(3b), pages 815-841.
    3. Nathalie Chusseau & Joël Hellier, 2012. "Globalisation and Inequality: Where do we stand?," Journal of Income Distribution, Ad libros publications inc., vol. 21(3-4), pages 7-34, November.
    4. Gomes, Diego B.P. & Iachan, Felipe S. & Santos, Cezar, 2020. "Labor earnings dynamics in a developing economy with a large informal sector," Journal of Economic Dynamics and Control, Elsevier, vol. 113(C).
    5. Elhanan Helpman & Oleg Itskhoki & Stephen Redding, 2010. "Trade and Labor Market Outcomes," CEP Discussion Papers dp1028, Centre for Economic Performance, LSE.
    6. Krishna, Pravin & Poole, Jennifer P. & Senses, Mine Zeynep, 2014. "Wage Effects of Trade Reform with Endogenous Worker Mobility," Journal of International Economics, Elsevier, vol. 93(2), pages 239-252.
    7. Martins, Pedro S. & Esteves, Luiz A., 2006. "Is There Rent Sharing in Developing Countries? Matched-Panel Evidence from Brazil," IZA Discussion Papers 2317, Institute of Labor Economics (IZA).
    8. Corseuil, Carlos Henrique & Foguel, Miguel N. & Gonzaga, Gustavo, 2019. "Apprenticeship as a stepping stone to better jobs: Evidence from Brazilian matched employer-employee data," Labour Economics, Elsevier, vol. 57(C), pages 177-194.
    9. Shai Bernstein & Emanuele Colonnelli & Davide Malacrino & Timothy McQuade, 2018. "Who Creates New Firms When Local Opportunities Arise?," NBER Working Papers 25112, National Bureau of Economic Research, Inc.
    10. Elhanan Helpman & Oleg Itskhoki & Marc-Andreas Muendler & Stephen J. Redding, 2017. "Trade and Inequality: From Theory to Estimation," Review of Economic Studies, Oxford University Press, vol. 84(1), pages 357-405.
    11. A. Kerem Co?ar & Nezih Guner & James Tybout, 2016. "Firm Dynamics, Job Turnover, and Wage Distributions in an Open Economy," American Economic Review, American Economic Association, vol. 106(3), pages 625-663, March.
    12. Elhanan Helpman & Oleg Itskhoki & Stephen Redding, 2010. "Inequality and Unemployment in a Global Economy," Econometrica, Econometric Society, vol. 78(4), pages 1239-1283, July.
    13. Barbosa, Klenio & Straub, Stéphane, 2017. "The Value of Revolving Doors in Public Procurement," TSE Working Papers 17-873, Toulouse School of Economics (TSE), revised May 2020.
    14. Biagetti, Marco & Giangreco, Antonio & Leonida, Leone & Scicchitano, Sergio, 2020. "BrExit or BritaIn: Is the UK more Attractive to Supervisors? An Analysis of Wage Premium to Supervision across the EU," GLO Discussion Paper Series 510, Global Labor Organization (GLO).
    15. Jorge Alvarez & Felipe Benguria & Niklas Engbom & Christian Moser, 2018. "Firms and the Decline in Earnings Inequality in Brazil," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(1), pages 149-189, January.
    16. Muendler, Marc-Andreas & Rauch, James E. & Tocoian, Oana, 2012. "Employee spinoffs and other entrants: Stylized facts from Brazil," International Journal of Industrial Organization, Elsevier, vol. 30(5), pages 447-458.
    17. Aguayo-Téllez, Ernesto & Muendler, Marc-Andreas & Poole, Jennifer P., 2010. "Globalization and Formal Sector Migration in Brazil," World Development, Elsevier, vol. 38(6), pages 840-856, June.
    18. Yanhui Wu, 2011. "Managerial Incentives and Compensation in a Global Market," CEP Discussion Papers dp1066, Centre for Economic Performance, LSE.
    19. Marc-Andreas Muendler, 2008. "Trade and Workforce Changeover in Brazil," NBER Chapters, in: The Analysis of Firms and Employees: Quantitative and Qualitative Approaches, pages 269-308, National Bureau of Economic Research, Inc.
    20. Joakim Westerlund & Per Hjertstrand, 2014. "Indirect Estimation of Semiparametric Binary Choice Models," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 76(2), pages 298-314, April.
    21. Doungdao Mahakitsiri, 2016. "Trade, Wage Premia and Labor Shortages," PIER Discussion Papers 44., Puey Ungphakorn Institute for Economic Research, revised Sep 2016.
    22. Goel, Manisha, 2017. "Inequality Between and Within Skill Groups: The Curious Case of India," World Development, Elsevier, vol. 93(C), pages 153-176.
    23. Lin, Faqin & Fu, Dahai, 2016. "Trade, Institution Quality and Income Inequality," World Development, Elsevier, vol. 77(C), pages 129-142.
    24. Tor Eriksson & Mariola Pytliková & Frédéric Warzynski, 2013. "Increased sorting and wage inequality in the Czech Republic," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 21(2), pages 357-380, April.
    25. Marc-Andreas Muendler & James E. Rauch, 2012. "Mobilizing Social Capital Through Employee Spinoffs," NBER Working Papers 18459, National Bureau of Economic Research, Inc.

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    More about this item

    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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