Inter-regional wage differentials with individual heterogeneity: evidence from Brazil

Freguglia, Ricardo da Silva; Filho, Naércio Aquino Menezes

doi:10.1007/s00168-010-0432-2

Cited by 15 publications

(18 citation statements)

References 16 publications

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“…It is also quite possible that heterogeneity in unobserved human capital is larger in Brazil, which might also explain why the estimated coefficient is so large. Freguglia and Menezes-Filho (2012) estimate local wage effects with migrant data, and find that estimated local wage differences diminish significantly when they control worker fixed effects, which suggests that omitted human capital factors may be quite important.…”

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confidence: 99%

What is Different About Urbanization in Rich and Poor Countries? Cities in Brazil, China, India and the United States

et al. 2016

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Are the well-known facts about urbanization in the United States also true for the developing world? We compare American metropolitan areas with comparable geographic units in Brazil, China and India. Both Gibrat's Law and Zipf's Law seem to hold as well in Brazil as in the U.S., but China and India look quite different. In Brazil and China, the implications of the spatial equilibrium hypothesis, the central organizing idea of urban economics, are not rejected. The India data, however, repeatedly rejects tests inspired by the spatial equilibrium assumption. One hypothesis is that the spatial equilibrium only emerges with economic development, as markets replace social relationships and as human capital spreads more widely. In all four countries there is strong evidence of agglomeration economies and human capital externalities. The correlation between density and earnings is stronger in both China and India than in the U.S., strongest in China. In India the gap between urban and rural wages is huge, but the correlation between city size and earnings is modest. The cross-sectional relationship between area-level skills and both earnings and area-level growth are also stronger in the developing world than in the U.S. The forces that drive urban success seem similar in the rich and poor world, even if limited migration and difficult housing markets make it harder for a spatial equilibrium to develop.

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confidence: 99%

What is Different About Urbanization in Rich and Poor Countries? Cities in Brazil, China, India and the United States

et al. 2016

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“…Overall, these figures support the human capital explanation for wage income inequality among regions. However, as many others have argued convincingly other explanations like unionization (Arbache, 1999), quality of education (Behrman & Birdsall, 1983), bargaining and mark-up power (Amadeo, 1994), and individual unobserved heterogeneity (Freguglia & Menezes-Filho, 2012) are important to understand wages differences.…”

Section: Wage Differencesmentioning

confidence: 99%

“…Few papers like Reis & Barros (1990), Savedoff (1990), Savedoff (1995), Azzoni & Servo (2002), Queiroz & Golgher (2008), and Freguglia & Menezes-Filho (2012) treat in an explicitly manner the stark earnings differences among Brazilian regions, pointing out the important role that human capital unequal distribution has on this inequality as well as other observed and unobserved individual heterogeneities. 2 Table 1 shows the evolution of the average monthly earnings between regions in Brazil.…”

Section: Wage Differencesmentioning

confidence: 99%

Regional Labor Market Differences in Brazil and Search Frictions: Some Structural Estimates

Oliveira

Carvalho

2016

Revista Brasileira De Economia

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We estimate an equilibrium job search model for six metropolitan areas located in different regions of Brazil. Two mechanisms of wage determination are considered: wage posting by monopsony firms and Nash bilateral bargaining. In order to estimate the model, we use the non-parametric method developed by Bontemps, Robin, & van den Berg [2000. Equilibrium search with continuous productivity dispersion: Theory and nonparametric estimation. International Economic Review, 41(2), . There is significant heterogeneity among the estimated structural parameters for these regions. We succeed in rationalizing some well-known regional differences in wages, unemployment rates and productivity prevalent in Brazilian labor markets, thus offering new interpretations. Metropolitan regions in the Northeast have much lower λ 0 (arrival rate of wage offers for unemployed workers) and λ 1 (arrival rate of wage offers for employed workers) vis a vis areas in the South or Southeast regions. This is a new, and much more precise, result worth considering on the regional inequality debate in Brazil. Regional inequality in wages, besides being an outcome of its regional human capital distribution, can be rationalized as inequality of search frictions brought by differences in λ 1 . We found a key (indirect) role for search frictions when analysing productivity differences as well. Since search frictions impact simultaneously on monopsony power as well as on productivity, in order to understand better regional productivity differences we must deepen our analysis on how these structural parameters are differentiated by regions. Labor market frictions add important insights into the regional debate, something not captured by more traditional econometric reduced form approaches. *

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“…O baixo dinamismo econômico de algumas regiões mostra-se como fator acentuadamente elevado para explicar os processos migratórios (SINGER, 1980;TAYLOR, 1999;BORJAS, 1996;PACHECO & PATARRA, 1997). A dinâmica da população é orientada pela dinâmica econômica, sendo este o principal fator de atração de migrantes no Brasil e no mundo (salvo os poucos países em que as migrações são motivadas pelas guerras, catástrofes climáticas, perseguições religiosas, dentre outras), mesmo compreendendo-se que a decisão é individual (SINGER, 1980;SAWYER, 1984;CANÇADO, 1999;MATA et al, 2007;CAMBOTA & PONTES, 2012;FREGUGLIA & MENEZES FILHO, 2012).…”

Section: Dinâmica Migratória E Inserção Socioeconômica: Uma Revisão Da Literaturaunclassified

Migração e inserção socioeconômica nos municípios brasileiros – 2000/2010

Filho

2021

RE&D

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Este Artigo busca analisar o acesso a serviços de infraestrutura domiciliar, a condição do capital humano e o acesso ao mercado de trabalho observando a condição de migração nos municípios do país. O método empírico tem suporte em modelos de regressão logística binária. Os resultados mostram que, na dimensão de infraestrutura domiciliar, os migrantes têm menos chances de residirem em domicílios atendidos por serviços de energia, abastecimento de água, esgotamento sanitário e coleta de lixo do que um responsável pelo domicílio não migrante. Já na dimensão capital humano, os migrantes têm mais chances de serem alfabetizados e de terem segundo grau completo ou ensino superior completo quando comparados à categoria de referência. Porém, os migrantes têm menos chances de estarem ocupados ou de serem contribuintes de instituto oficial de previdência do que um não migrante, apesar de terem mais chances de estarem desenvolvendo suas atividades laborais em setores da indústria, comércio ou serviços do que a categoria de referência.

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Inter-regional wage differentials with individual heterogeneity: evidence from Brazil

Cited by 15 publications

References 16 publications

What is Different About Urbanization in Rich and Poor Countries? Cities in Brazil, China, India and the United States

What is Different About Urbanization in Rich and Poor Countries? Cities in Brazil, China, India and the United States

Regional Labor Market Differences in Brazil and Search Frictions: Some Structural Estimates

Migração e inserção socioeconômica nos municípios brasileiros – 2000/2010

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