DETERMINANTS OF WAGE INEQUALITY IN BRAZILIAN MUNICIPALITIES
Matheus de Alencar (),
Jair Araujo (),
Wellington Justo () and
Celina de Oliveira ()
Additional contact information
Matheus de Alencar: Ph.D. student in Applied Economics from Rio Grande do Sul Federal University (UFRGS).
Jair Araujo: Professor in the Agricultural Economics Department of CearÃ¡ Federal University (UFC).
Wellington Justo: Professor in the Department of Economics of Cariri Regional University (URCA).
Celina de Oliveira: Ph.D. in Economics from ParaÃba Federal University (UFPB).
Economics Bulletin, 2019, vol. 39, issue 2, 845-853
This study analyzes the determinants of wage inequality in Brazilian municipalities from 2007 to 2016, based on panel data regressions of municipal variables calculated from microdata contained in the Annual Social Information Reports (RAIS) submitted by companies to the Ministry of Labor (MTE). In general, the main hypothesis was confirmed, namely a positive relationship between wage inequality and the number of formal jobs (a proxy for municipal size), i.e., municipalities with larger populations tend to have higher inequality levels. The same relationship was observed for the average monthly salary of the municipality. Besides this, the results indicate a positive effect on wage inequality of the proportion of workers in the financial sector, in the public sector, with college education and men in the workforce. In summary, a large part of the wage inequality in Brazil at the local level is generated by wage differences between sectors (e.g., percentage participation in the public and financial sectors), level of schooling (stock of human capital) and worker gender.
Keywords: Inequality; Wages; Municipalities. (search for similar items in EconPapers)
JEL-codes: D6 R2 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-18-00889
Access Statistics for this article
More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().