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Spatial Distribution of Agglomeration Effects on the Returns to Education in Brazil

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  • Diana Lúcia Gonzaga da Silva

    ()

  • Gervásio Ferreira dos Santos, Ricardo da Silva Freguglia

Abstract

The objective of this paper is to analyze the spatial distribution of the agglomeration effect on wage differentials, from the returns to education in Brazil. To find the agglomeration effect on the returns to education in the 24 metropolitan areas in Brazil, a wage equation was estimated with the control of individual fixed effects and metropolitan areas effects, using a panel of micro data - RAIS-Migra - of formal workers. The results show that there is agglomeration gain of the return to education in Brazil. These gains are more favorable in the North and Northeast regions of Brazil. The metropolitan areas of the Center-South tend to generate higher earnings from individual skills of workers

Suggested Citation

  • Diana Lúcia Gonzaga da Silva & Gervásio Ferreira dos Santos, Ricardo da Silva Freguglia, 2015. "Spatial Distribution of Agglomeration Effects on the Returns to Education in Brazil," Working Papers, Department of Economics 2015_07, University of São Paulo (FEA-USP).
  • Handle: RePEc:spa:wpaper:2015wpecon7
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    More about this item

    Keywords

    Agglomeration Economies; Urban Wage Premium; Education; Wage Inequality; Metropolitan Areas;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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