Publication:
Regional wage differences and segmentation in Brazil's urban labor markets

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eng

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Brasil

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1974-1987

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BR

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dARK

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Instituto de Pesquisa Econômica Aplicada (Ipea)

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Reproduction of this text and the data it contains is allowed as long as the source is cited. Reproductions for commercial purposes are prohibited

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Discussion Paper 22 : Regional wage differences and segmentation in Brazil's urban labor markets, Diferenças salariais regionais e segmentação dos mercados de trabalho urbanos do Brasil

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Abstract

Este artigo investiga se a força de trabalho no Brasil está geograficamente segmentado, analisando a variação da renda dos trabalhadores. Ele considera que as explicações normais de mercado para as disparidades salariais regionais, tais como variações no custo de vida ou força de trabalho de qualidade, apenas pode explicar em parte as disparidades. O documento conclui que os obstáculos geográficos aos fluxos de fator não são significativas no Brasil. Em vez disso, a persistência de diferenças salariais regionais, apesar da crescente integração da economia brasileira, pode ser em grande parte atribuída a variações regionais na composição da demanda de trabalho.

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This paper investigates whether the workforce in Brazil is geographically segmented by analyzing variation in workers' earnings. It finds that standard market explanations for regional wage disparities, such as variations in the cost of living or workforce quality, can explain only a part of the disparities. The paper concludes that geographical obstacles to factor flows are not significant in Brazil. Rather, the persistence of regional wage differentials, in spite of the increasing integration of the Brazilian economy, can be largely attributed to regional variation in the composition of labor demand.

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