Determining factors of relative wages: an empirical study with primary data for the metropolitan region of Recife

Alexandre Rands Barros () and Maurício Rands Barros ()

Brazilian Journal of Political Economy, 1998, vol. 18, issue 1, 194-208

Abstract: This paper forwards some hypotheses on wage determination and relies on a survey with 210 questionnaires applied to workers in Recife to test them empirically. The major conclusions are: (i) Human capital is an important factor determining real wages and the domestic environment is crucial for its accumulation; (ii) workers bargaining strength, as measured by the union model, as well as size and ownership of the company, are also relevant factors determining the real wages; (iii) unions affiliation to Central Única dos Trabalhadores raises wages; (iv) age is a relevant variable to determine wages, but only in the set which includes state owned enterprises; (v) the number of dependents is also relevant to determine relative wages; and (vi) wages for women are lower than for men. JEL Classification: J3; J24.

Keywords: Wage differentials; wage inequality; human capital (search for similar items in EconPapers)
Date: 1998
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