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Empirical Economics

Erschienen in:

20.06.2016

The Brazilian wage curve: new evidence from the National Household Survey

verfasst von: Badi H. Baltagi, Bartlomiej Rokicki, Kênia Barreiro de Souza

Erschienen in: Empirical Economics | Ausgabe 1/2017

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Abstract

This paper reconsiders the Brazilian wage curve using individual data from the National Household Survey at 27 Federative Units over the period 2002–2009. We find evidence in favor of the Brazilian wage curve with an unemployment elasticity of −0.08. We also find that males in Brazil are significantly more responsive to local unemployment rates (−0.13) than their female counterparts. In fact, we find that the unemployment elasticity for women is statistically insignificant. Applying gender-specific unemployment rates, the elasticity for men decreases to −0.09, while the elasticity for women remains statistically insignificant. This paper also finds that the estimates for Brazilian wage curve are completely different for the case of formal and informal workers.

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In Portuguese “Pesquisa Nacional por Amostra de Domicílios” (PNAD).

The National Sample Survey (PNAD) is obtained annually except for Census years. The last two censuses were conducted in 2000 and 2010. So, the period 2001–2009 is the largest and most recent annual information sequence.

It is worth noting that the informality was even higher in 2002, when 37.25 % employees lacked a formal labor contract.

See Baltagi and Blien (1998) for more details.

As much as we like to have more regions for our study of Brazil, we believe that the Federative Unit is the lowest level of territorial aggregation for which the National Household Survey remains statistically representative.

Note that dynamics are not feasible here, since these survey data do not necessarily follow the same individual over the entire period.

We tried to include spatial spillovers (using different weights matrices) at the level of Federative Units. However, these spatial spillovers were not statistically significant at this level of territorial aggregation and we do not report these results here.

The results on the other control variables are available upon request.

The control variables are exactly the same as in previous regressions.

Contrary to our results, Ramos et al. (2009) also find that the unemployment elasticity for women working in the informal sector is higher than that for men in Colombia.

Fair reasons can be bad discipline, insubordination, employment abandonment, criminal acts, etc.

In Portuguese “Pesquisa Nacional por Amostra de Domicílios” (PNAD).

Or −0.246 with Heckman correction.

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Titel: The Brazilian wage curve: new evidence from the National Household Survey
verfasst von: Badi H. Baltagi
Bartlomiej Rokicki
Kênia Barreiro de Souza
Publikationsdatum: 20.06.2016
Verlag: Springer Berlin Heidelberg
Erschienen in: Empirical Economics / Ausgabe 1/2017
Print ISSN: 0377-7332
Elektronische ISSN: 1435-8921
DOI: https://doi.org/10.1007/s00181-016-1105-5

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