Wage Differentials in Brazil: Theory and Evidence
Posted: 26 Nov 2001
This paper investigates the wage determination and wage differentials in Brazil for the 1980s and 1990s. We test several competitive models ant theories of segmentation explained by efficiency wages. We find that unmeasured abilities and efficiency wages play a role in explaining the wage determination in Brazil, and that both models gain importance in the 1990s. Transitory difference and compensating differentials do not seem to explain wage formation and wage differentials in Brazil.
Keywords: wage determination, wage differentials, Brazil
JEL Classification: J31, J41
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