Spatial Dynamics of Labor Markets in Brazil
There was substantial spatial variation in labor market outcomes in Brazil over the 1990?s. In 2000, about one fifth of workers lived in apparently economically stagnant municipios where real wages declined but employment increased faster than the national population growth rate. More than one third lived in apparently dynamic municipios experiencing both real wage growth and faster-than-average employment growth; these areas absorbed more than half of net employment growth over the period. To elucidate this spatial variation, we estimated spatial labor supply and demand equations describing wage and employment changes of Brazilian municípios. We used Conley?s spatial GMM technique to allow for instrumental variable estimation in the presence of spatially autocorrelated errors. Chief findings include: a very strong influence of initial workforce educational levels on subsequent wage growth (controlling for possibly confounding variables such as remoteness and climate); evidence of positive spillover effects of own-municipio growth onto neighbors? wage and employment levels; an exodus from farming areas; relatively elastic response of wages to an increase in labor supply; and evidence of a local multiplier effect from government transfers.
|Date of creation:||Aug 2005|
|Contact details of provider:|| Postal: SBS - Quadra 01 - Bloco J - Ed. BNDES, Brasília, DF - 70076-90|
Web page: http://www.ipea.gov.br
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Romer, Paul M, 1986.
"Increasing Returns and Long-run Growth,"
Journal of Political Economy,
University of Chicago Press, vol. 94(5), pages 1002-1037, October.
- Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
- Steven G. Rivkin & Eric A. Hanushek & John F. Kain, 2005. "Teachers, Schools, and Academic Achievement," Econometrica, Econometric Society, vol. 73(2), pages 417-458, 03.
- Eric A. Hanushek & John F. Kain & Steven G. Rivkin, 1998. "Teachers, Schools, and Academic Achievement," NBER Working Papers 6691, National Bureau of Economic Research, Inc.
- Fan, Shenngen & Hazell, Peter & Haque, T., 2000. "Targeting public investments by agro-ecological zone to achieve growth and poverty alleviation goals in rural India," Food Policy, Elsevier, vol. 25(4), pages 411-428, August.
- Magalhães, André & Hewings, Geoffrey J.D. & Azzoni, Carlos R., 2005. "Spatial Dependence and Regional Convergence in Brazil," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 6, pages 5-20.
- Fan, Shenggen & Zhang, Linxiu & Zhang, Xiaobo, 2002. "Growth, inequality, and poverty in rural China: the role of public investments," Research reports 125, International Food Policy Research Institute (IFPRI).
- Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 407-443.
- Robert J. Barro, 1989. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc.
- Barro, R.J., 1989. "Economic Growth In A Cross Section Of Countries," RCER Working Papers 201, University of Rochester - Center for Economic Research (RCER).
- Carlos R. Azzoni & Luciana M.S. Servo, 2002. "Education, cost of living and regional wage inequality in Brazil," Review of Economic Design, Springer;Society for Economic Design, vol. 81(2), pages 157-175, 04.
- Luciana M.S. Servo & Carlos R. Azzoni, 2002. "Education, cost of living and regional wage inequality in Brazil," Papers in Regional Science, Springer;Regional Science Association International, vol. 81(2), pages 157-175.
- Carlos R. Azzoni & Luciana M.S. Servo, 2002. "Education, cost of living and regional wage inequality in Brazil," Economics of Governance, Springer, vol. 81(2), pages 157-175, 04.
- Fiess, Norbert M. & Verner, Dorte, 2003. "Migration and human capital in Brazil during the 1990s," Policy Research Working Paper Series 3093, The World Bank.
- Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
- Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
- Paul M Romer, 1999. "Endogenous Technological Change," Levine's Working Paper Archive 2135, David K. Levine.
- Fan, Shenggen & Chan-Kang, Connie, 2004. "Returns to investment in less-favored areas in developing countries: a synthesis of evidence and implications for Africa," Food Policy, Elsevier, vol. 29(4), pages 431-444, August.
- Baicker, Katherine, 2005. "The spillover effects of state spending," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 529-544, February.
- Carlos R. Azzoni, 2001. "Economic growth and regional income inequality in Brazil," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 35(1), pages 133-152.
- Glaeser, Edward L. & Scheinkman, JoseA. & Shleifer, Andrei, 1995. "Economic growth in a cross-section of cities," Journal of Monetary Economics, Elsevier, vol. 36(1), pages 117-143, August.
- Glaeser, E.L. & Scheinkman, J.A., 1993. "Economic Growth in a Cross-Section of Cities," Harvard Institute of Economic Research Working Papers 1645, Harvard - Institute of Economic Research.
- Edward L. Glaeser & Jose A. Scheinkman & Andrei Shleifer, 1995. "Economic Growth in a Cross-Section of Cities," NBER Working Papers 5013, National Bureau of Economic Research, Inc.
- Afonso Henriques Borges Ferreira & Clélio Campolina Diniz, 1994. "Convergência entre as rendas per capita estaduais no Brasil," Textos para Discussão Cedeplar-UFMG 079, Cedeplar, Universidade Federal de Minas Gerais.
- Alexandre Carvalho & Daniel da Mata & Kenneth M. Chomitz, 2005. "Estimation of Multiequation Cross-Section Models in the Presence of Spatial Autocorrelation," Discussion Papers 1111, Instituto de Pesquisa Econômica Aplicada - IPEA.
- Ellery Júnior, Roberto de Góes & Ferreira, Pedro Cavalcanti, 1995. "Convergencia entre renda per capita dos estados brasileiros," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 255, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July. Full references (including those not matched with items on IDEAS)