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Wage Differentials in Brazilian Manufacturing

Jorge Arbache ()

Studies in Economics from School of Economics, University of Kent

Abstract: This paper empirically investigates wage differentials for Brazilian manufacturing sector using micro-data analysis. We estimate cross-sectional wage equations including human capital variables, occupation, region, work-card possession, personal characteristics, among others, and using a more accurate estimation procedure proposed by Haisken-DeNew and Schmidt (1997). Compared to previous studies for Brazil, our results show a substantial drop in the non-explained wage dispersion. Our major finding is that wage determination seems to be a result of a mix of factors such as human capital, unmeasured abilities, efficiency wages, rent-sharing, and discrimination. However, contrasting with previous results which strongly support the importance of segmentation in wage determination, our results indicate that competitive explanations seem to play the most relevant role for understanding wage differentials.

Keywords: Wage differentials; wage determination; manufacturing; Brazil (search for similar items in EconPapers)
JEL-codes: J31 J32 J71 (search for similar items in EconPapers)
Date: 1997-06
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