Wage Determination in Northeast Brazil

The author analyzes the labor markets in the Northeast region of Brazil that includes Pernambuco, Bahia, and Ceará states. Her findings show a rather heterogeneous impact pattern of individual characteristics on monthly wages across the wage distribution. That is, the magnitude of the effect of a wa...

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Main Author:	Verner, Dorte
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCIDENTS ACCOUNTING ADDITION DISCRIMINATION ECONOMIC GROWTH EDUCATION EDUCATIONAL DEMAND EMPLOYMENT FORMAL EDUCATION GENDER HUMAN CAPITAL INCOME INDUSTRY/MANUFACTURING INTERVENTION JOB CREATION LABOR FORCE LABOR MARKET LABOR MARKET PROBLEMS LABOR MARKETS LABOR PRODUCTIVITY LEVEL OF EDUCATION LEVELS OF EDUCATION LIFE CYCLE LITERATURE PAPERS PRIMARY EDUCATION PRODUCTIVITY QUALITY OF EDUCATION REAL WAGES SCHOOLING SCHOOLS SOCIAL CAPITAL TEACHING TECHNOLOGICAL CHANGE TENURE TERTIARY EDUCATION UNEMPLOYMENT WAGE DIFFERENTIALS WAGE DISTRIBUTION WAGES WORKER PRODUCTIVITY WORKERS WORKING CONDITIONS
Online Access:	http://documents.worldbank.org/curated/en/2005/03/5696197/wage-determination-northeast-brazil http://hdl.handle.net/10986/8979

id	okr-10986-8979
recordtype	oai_dc
spelling	okr-10986-89792021-04-23T14:02:42Z Wage Determination in Northeast Brazil Verner, Dorte ACCIDENTS ACCOUNTING ADDITION DISCRIMINATION ECONOMIC GROWTH EDUCATION EDUCATIONAL DEMAND EMPLOYMENT FORMAL EDUCATION GENDER HUMAN CAPITAL INCOME INDUSTRY/MANUFACTURING INTERVENTION JOB CREATION LABOR FORCE LABOR MARKET LABOR MARKET PROBLEMS LABOR MARKETS LABOR PRODUCTIVITY LEVEL OF EDUCATION LEVELS OF EDUCATION LIFE CYCLE LITERATURE PAPERS PRIMARY EDUCATION PRODUCTIVITY QUALITY OF EDUCATION REAL WAGES SCHOOLING SCHOOLS SOCIAL CAPITAL TEACHING TECHNOLOGICAL CHANGE TENURE TERTIARY EDUCATION UNEMPLOYMENT WAGE DIFFERENTIALS WAGE DISTRIBUTION WAGES WORKER PRODUCTIVITY WORKERS WORKING CONDITIONS The author analyzes the labor markets in the Northeast region of Brazil that includes Pernambuco, Bahia, and Ceará states. Her findings show a rather heterogeneous impact pattern of individual characteristics on monthly wages across the wage distribution. That is, the magnitude of the effect of a wage determinant is different depending on whether the worker is placed in the lower, median, or top of the wage distribution. The findings reveal that basic schooling matters for all four geographical areas and across the income distribution. However, poor workers are awarded lower returns than their richer peers, and in Bahia and Ceará, the poor do not obtain any returns to basic schooling. Furthermore, the impact of 5-8 or 9-11 years of education is larger than that of 1-4 years of completed education. The returns obtained by a median worker are higher in Ceará and Pernambuco than in Bahia. Finally, completed tertiary education offers the largest returns of all levels of education. The median worker receives a premium of 105, 249, and 216 percent in Ceará, Pernambuco, and Bahia, respectively. Hence, one direct policy implication is to increase the quality of education, in particular in poorer neighborhoods. Experience impacts positively on wages and it increases with age until workers reach 50 years of age. However, returns to experience are falling significantly across the wage distribution. For the poor and younger generations, experience contributes more to wages than education. The occupation of workers is important for wage determination. All workers in the included occupational groups are paid more than workers engaged in agricultural activities. Workers employed as technicians or administrators obtain the highest returns. The white/nonwhite wage disparity reveals that white workers are paid 17 percent more than their nonwhite co-workers, taking into account other characteristics. Gender disparities are large in the Northeast and heterogeneous across the wage distribution. The time spent in the current state impacts adversely on wages. That is, those that have stayed earn, on average, less than the newcomers. There are no considerable differences between male and female workers. Union membership has a positive impact on workers' wages. 2012-06-25T21:50:11Z 2012-06-25T21:50:11Z 2005-03 http://documents.worldbank.org/curated/en/2005/03/5696197/wage-determination-northeast-brazil http://hdl.handle.net/10986/8979 English Policy Research Working Paper; No. 3548 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Brazil
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACCIDENTS ACCOUNTING ADDITION DISCRIMINATION ECONOMIC GROWTH EDUCATION EDUCATIONAL DEMAND EMPLOYMENT FORMAL EDUCATION GENDER HUMAN CAPITAL INCOME INDUSTRY/MANUFACTURING INTERVENTION JOB CREATION LABOR FORCE LABOR MARKET LABOR MARKET PROBLEMS LABOR MARKETS LABOR PRODUCTIVITY LEVEL OF EDUCATION LEVELS OF EDUCATION LIFE CYCLE LITERATURE PAPERS PRIMARY EDUCATION PRODUCTIVITY QUALITY OF EDUCATION REAL WAGES SCHOOLING SCHOOLS SOCIAL CAPITAL TEACHING TECHNOLOGICAL CHANGE TENURE TERTIARY EDUCATION UNEMPLOYMENT WAGE DIFFERENTIALS WAGE DISTRIBUTION WAGES WORKER PRODUCTIVITY WORKERS WORKING CONDITIONS
spellingShingle	ACCIDENTS ACCOUNTING ADDITION DISCRIMINATION ECONOMIC GROWTH EDUCATION EDUCATIONAL DEMAND EMPLOYMENT FORMAL EDUCATION GENDER HUMAN CAPITAL INCOME INDUSTRY/MANUFACTURING INTERVENTION JOB CREATION LABOR FORCE LABOR MARKET LABOR MARKET PROBLEMS LABOR MARKETS LABOR PRODUCTIVITY LEVEL OF EDUCATION LEVELS OF EDUCATION LIFE CYCLE LITERATURE PAPERS PRIMARY EDUCATION PRODUCTIVITY QUALITY OF EDUCATION REAL WAGES SCHOOLING SCHOOLS SOCIAL CAPITAL TEACHING TECHNOLOGICAL CHANGE TENURE TERTIARY EDUCATION UNEMPLOYMENT WAGE DIFFERENTIALS WAGE DISTRIBUTION WAGES WORKER PRODUCTIVITY WORKERS WORKING CONDITIONS Verner, Dorte Wage Determination in Northeast Brazil
geographic_facet	Latin America & Caribbean Brazil
relation	Policy Research Working Paper; No. 3548
description	The author analyzes the labor markets in the Northeast region of Brazil that includes Pernambuco, Bahia, and Ceará states. Her findings show a rather heterogeneous impact pattern of individual characteristics on monthly wages across the wage distribution. That is, the magnitude of the effect of a wage determinant is different depending on whether the worker is placed in the lower, median, or top of the wage distribution. The findings reveal that basic schooling matters for all four geographical areas and across the income distribution. However, poor workers are awarded lower returns than their richer peers, and in Bahia and Ceará, the poor do not obtain any returns to basic schooling. Furthermore, the impact of 5-8 or 9-11 years of education is larger than that of 1-4 years of completed education. The returns obtained by a median worker are higher in Ceará and Pernambuco than in Bahia. Finally, completed tertiary education offers the largest returns of all levels of education. The median worker receives a premium of 105, 249, and 216 percent in Ceará, Pernambuco, and Bahia, respectively. Hence, one direct policy implication is to increase the quality of education, in particular in poorer neighborhoods. Experience impacts positively on wages and it increases with age until workers reach 50 years of age. However, returns to experience are falling significantly across the wage distribution. For the poor and younger generations, experience contributes more to wages than education. The occupation of workers is important for wage determination. All workers in the included occupational groups are paid more than workers engaged in agricultural activities. Workers employed as technicians or administrators obtain the highest returns. The white/nonwhite wage disparity reveals that white workers are paid 17 percent more than their nonwhite co-workers, taking into account other characteristics. Gender disparities are large in the Northeast and heterogeneous across the wage distribution. The time spent in the current state impacts adversely on wages. That is, those that have stayed earn, on average, less than the newcomers. There are no considerable differences between male and female workers. Union membership has a positive impact on workers' wages.
format	Publications & Research :: Policy Research Working Paper
author	Verner, Dorte
author_facet	Verner, Dorte
author_sort	Verner, Dorte
title	Wage Determination in Northeast Brazil
title_short	Wage Determination in Northeast Brazil
title_full	Wage Determination in Northeast Brazil
title_fullStr	Wage Determination in Northeast Brazil
title_full_unstemmed	Wage Determination in Northeast Brazil
title_sort	wage determination in northeast brazil
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2005/03/5696197/wage-determination-northeast-brazil http://hdl.handle.net/10986/8979
_version_	1764407206495649792

Wage Determination in Northeast Brazil

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