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The Brazilian Wage Curve: New Evidence from the National Household Survey

Listed author(s):
  • Baltagi, Badi H.

    ()

    (Syracuse University)

  • Rokicki, Bartlomiej

    ()

    (Warsaw University)

  • Barreiro de Souza, Kênia

    ()

    (CEDEPLAR/UFMG)

This paper reconsiders the Brazilian wage curve using individual data from the National Household Survey at 27 Federative Units over the period 2002 - 2009. We find evidence in favor of the Brazilian wage curve with an unemployment elasticity of -0.08 when the lagged unemployment rate is used as an instrument for current unemployment rate. We also find that males in Brazil are significantly more responsive to local unemployment rates (-0.13) than their female counterparts. In fact, we find that the unemployment elasticity for women is statistically insignificant. Applying gender specific unemployment rates, the elasticity for men decreases to -0.09, while the elasticity for women remains statistically insignificant. This paper also finds that the estimates for Brazilian wage curve are completely different for the case of formal and informal workers.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 8468.

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Length: 26 pages
Date of creation: Sep 2014
Handle: RePEc:iza:izadps:dp8468
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  1. Konyalı, Gonca, 2012. "Wage Curve Evidence From Turkey’s 2007-2009 Income and Living Conditions Survey," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 24, pages 199-210.
  2. Bertrand, Marianne, 2011. "New Perspectives on Gender," Handbook of Labor Economics, Elsevier.
  3. David G. Blanchflower & Andrew J. Oswald, 1995. "The Wage Curve," MIT Press Books, The MIT Press, edition 1, volume 1, number 026202375x.
  4. Badi H. Baltagi & Yusuf Soner Baskaya & Timur Hulagu, 2013. "How different are the wage curves for formal and informal workers? Evidence from Turkey," Papers in Regional Science, Wiley Blackwell, vol. 92(2), pages 271-283, June.
  5. Ramos, Raul & Duque, Juan C. & Surinach, Jordi, 2010. "Is the wage curve formal or informal? Evidence for Colombia," Economics Letters, Elsevier, vol. 109(2), pages 63-65, November.
  6. Luis Eduardo Arango & Nataly Obando & Carlos Esteban Posada, 2010. "Sensibilidad de los salarios al desempleo regional en Colombia: nuevas estimaciones de la curva de salarios," BORRADORES DE ECONOMIA 006829, BANCO DE LA REPÚBLICA.
  7. Roberto Santolin & Mariângela Furlan Antigo, 2009. "Curvas de salários dinâmicas: um estudo dos determinantes da histerese do desemprego no Brasil," Textos para Discussão Cedeplar-UFMG td368, Cedeplar, Universidade Federal de Minas Gerais.
  8. Peter Nijkamp & Jacques Poot, 2005. "The Last Word on the Wage Curve?," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 421-450, July.
  9. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters,in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
  10. Arthur Simão Pereira Da Silva & Sandro Eduardo Monsueto, 2014. "Flexibilidade Do Mercado De Trabalho: Uma Análise Comparativa Entre Segmentos Socioeconômicos No Brasil(2002-2009)," Anais do XL Encontro Nacional de Economia [Proceedings of the 40th Brazilian Economics Meeting] 235, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  11. David Card, 1995. "The Wage Curve: A Review," Working Papers 722, Princeton University, Department of Economics, Industrial Relations Section..
  12. Marisa Carla Bucheli Anaya & Cecilia González Rodríguez-Villamil, 2012. "An estimation of the wage curve for Uruguay," REVISTA CUADERNOS DE ECONOMÍA, UN - RCE - CID, June.
  13. David Card, 1995. "The Wage Curve: A Review," Journal of Economic Literature, American Economic Association, vol. 33(2), pages 285-299, June.
  14. Wooldridge, Jeffrey M., 1995. "Selection corrections for panel data models under conditional mean independence assumptions," Journal of Econometrics, Elsevier, vol. 68(1), pages 115-132, July.
  15. David G. Blanchflower & Andrew Oswald, 1995. "International Wage Curves," NBER Chapters,in: Differences and Changes in Wage Structures, pages 145-174 National Bureau of Economic Research, Inc.
  16. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, December.
  17. David G. Blanchflower & Andrew J. Oswald, 1995. "An Introduction to the Wage Curve," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 153-167, Summer.
  18. Baltagi, Badi H. & Rokicki, Bartlomiej, 2014. "The spatial Polish wage curve with gender effects: Evidence from the Polish Labor Survey," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 36-47.
  19. Souza, Igor Viveiros de & Machado, Ana Flávia, 2004. "Curva de Rendimentos: uma Análise no Mercado de Trabalho Urbano e Rural no Brasil (1981/ 99)," Brazilian Journal of Rural Economy and Sociology (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 42(1), March.
  20. Janine Berg & Dante Contreras, 2004. "Political-Economic Regime and the Wage Curve: Evidence from Chile, 1957-96," International Review of Applied Economics, Taylor & Francis Journals, vol. 18(2), pages 151-165.
  21. Esteban Sanroma & Raul Ramos, 2005. "Further Evidence on Disaggregated Wage Curves: The Case of Spain," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 8(3), pages 227-243, September.
  22. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  23. repec:fth:prinin:343 is not listed on IDEAS
  24. Heather Boushey, 2002. "Reworking the Wage Curve: Exploring the consistency of the model across time, space and demographic group," Review of Political Economy, Taylor & Francis Journals, vol. 14(3), pages 293-311.
  25. Reis, Mauricio Cortez, 2006. "Os Impactos das Mudanças na Demanda por Trabalho Qualificado sobre o Desemprego por Nível de Qualificação durante os Anos Noventa no Brasil," Revista Brasileira de Economia - RBE, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 60(3), February.
  26. Baltagi, Badi H. & Blien, Uwe, 1998. "The German wage curve: evidence from the IAB employment sample," Economics Letters, Elsevier, vol. 61(2), pages 135-142, November.
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