How Much Does Talent Matter? Evidence from the Brazilian Formal Cultural Industry

19 Pages Posted: 30 Mar 2017

See all articles by Ricardo S. Freguglia

Ricardo S. Freguglia

Universidade Federal de Juiz de Fora

Amir B. Ferreira Neto

Florida Gulf Coast University

Date Written: March 30, 2017

Abstract

The goal of this paper is to evaluate how much does talent – the individual non-observed characteristics – matter to explain the wage differences between workers from the cultural industry and workers from other formal industries in Brazil. To do so we use the data from 2003 to 2008 of the Rais-Migra – MTE, which is a true panel of formal workers from Brazil, and use fixed effects estimators to capture the talent measure and the Blinder (1973) and Oaxaca (1973) decomposition to seek for evidences of wage difference. The results imply that the talent is important in the determination of wages especially when considering formal workers in the cultural activities, occupations and workers in both cultural activities and occupation. The Oaxaca decomposition provides evidence that when considering talent, each of the groups paid their workers more per se, proving that not only the talent matter, but also that the formal cultural environment in Brazil positively discriminates their workers.

Keywords: Wage Differentials, Cultural Industry, Talent, Fixed Effects, Brazil

JEL Classification: J31, Z11

Suggested Citation

Freguglia, Ricardo S. and Borges Ferreira Neto, Amir, How Much Does Talent Matter? Evidence from the Brazilian Formal Cultural Industry (March 30, 2017). Available at SSRN: https://ssrn.com/abstract=2943519 or http://dx.doi.org/10.2139/ssrn.2943519

Ricardo S. Freguglia

Universidade Federal de Juiz de Fora ( email )

Department of Economics - Rua José Lourenço Kelmer
Campus Universtário
Juiz de Fora, Minas Gerais 36.036-900
Brazil

Amir Borges Ferreira Neto (Contact Author)

Florida Gulf Coast University ( email )

Lutgert College of Business
10501 FGCU Boulevard South
Fort Myers, FL 33965-6565
United States
33965-6565 (Fax)

HOME PAGE: http://www.amirneto.com

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
19
Abstract Views
314
PlumX Metrics