An empirical model of diversification cones and wage inequality for the states of Brazil

Eleydiane Maria Gomes Vale and João Mário deSantos De Frnança

International Economics, 2017, vol. 152, issue C, 55-62

Abstract: The objective of this article is to join the discussion in the area of international trade, the so-called: diversification cones model, to provide evidence that it is robust in explaining differences in wages also for developing countries. We propose an application of the model created by Kiyota (2012), which separates Brazilian states into two cones. This is accomplished through an ISUR econometric model with eighteen manufacturing industries and two annual samples, 1997 and 2007. Wage differences between cones are measured, and salary equation showed to be crucial for the fit of the model.

Keywords: Diversification cones; Wage inequality; Development paths (search for similar items in EconPapers)
JEL-codes: C31 F14 F16 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S2110701716301342
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:inteco:v:152:y:2017:i:c:p:55-62

DOI: 10.1016/j.inteco.2017.08.001

Access Statistics for this article

International Economics is currently edited by Valerie Mignon and Marcelo Olarreaga

More articles in International Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().