Wage Discrimination and Place of Residence

Brazilian Journal of Applied Economics, Vol. 12, No, 3, pp. 443-461, São Paulo, July-September 2008

20 Pages Posted: 11 Jan 2005 Last revised: 16 Feb 2012

See all articles by Adolfo Sachsida

Adolfo Sachsida

Institute for Applied Economic Research (IPEA); Institute of Applied Economic Research (IPEA)

Mario Jorge Cardoso Mendonca

Institute of Applied Economic Research (IPEA) - Directory of Macroeconomic Policy & Studies (DIMAC)

Paulo R. A. Loureiro

University of Brasília- UnB

Date Written: December 1, 2004

Abstract

This article tests the hypothesis of wage discrimination generated by the place of residence. Furthermore, four alternative explanations for the correlation between wages and place of residence are tested. The econometric results are robust to both a large set of explanatory variables and different econometric specifications. The instrumental variable and the 3 Stages Least Squares approach are used to correct both the endogeneity of the place of residence and the omission of the variable ability (ability bias). After all, the results suggest expressive wage punishment against workers that lived in poor areas.

Keywords: Wage discrimination, spatial discrimination, place of residence

JEL Classification: J71, J31

Suggested Citation

Sachsida, Adolfo and Cardoso Mendonca, Mario Jorge and Loureiro, Paulo R. A., Wage Discrimination and Place of Residence (December 1, 2004). Brazilian Journal of Applied Economics, Vol. 12, No, 3, pp. 443-461, São Paulo, July-September 2008 , Available at SSRN: https://ssrn.com/abstract=646982 or http://dx.doi.org/10.2139/ssrn.646982

Adolfo Sachsida (Contact Author)

Institute for Applied Economic Research (IPEA) ( email )

SBS Ed. BNDES Quadra 1
7o. andar
Brasilia DF 7000-010
Brazil
+55 61 2026-5025 (Phone)
+55 61 315-5448 (Fax)

HOME PAGE: http://www.bdadolfo.blogspot.com

Institute of Applied Economic Research (IPEA) ( email )

Av. Pres. Antonio Carlos , 51 - 17 andar
Rio de Janeiro, RJ, 20020-010
Brazil

Mario Jorge Cardoso Mendonca

Institute of Applied Economic Research (IPEA) - Directory of Macroeconomic Policy & Studies (DIMAC) ( email )

Av. Presidente Antonio Carlos 51
10 Andar Centro
Rio de Janeiro RJ 20020-010
Brazil

Paulo R. A. Loureiro

University of Brasília- UnB ( email )

Campus Darcy Ribeiro-Asa Norte 70362-010 - Brasil
Brasilia, DF 70362-010
Brazil

HOME PAGE: http://https://sites.google.com/site/praloureiro/

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