AGGLOMERATION AND WAGE DIFFERENTIALS IN BRAZIL

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DOI:

https://doi.org/10.61999/abet.1676-4439.2022v21n1.54931

Abstract

The main objective of this study is to identify the contribution of agglomeration economies, captured by the employment density, on the wage differential in the Brazilian regions from 2010 to 2014. The regressions are based on the model proposed by Combes, Duranton, and Gobillon (2008), from the mincerian wage equations by using data from the Ministry of Labor (RAIS-MTE). The results found in all the regression models indicate that the most qualified workers, the employees in more industrialized sectors, and in the largest firms, as well as the residents of the Midwest and Southeast regions, they receive the highest salaries when compared to their counterparts. Finally, for the variable of interest - employment density - the results show that agglomeration economies positively influence the wage differentials of workers in Brazilian regions.

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Published

2022-08-17

How to Cite

Pereira, J. D. da S., Silva, A. S. da, & Rocha, R. de M. (2022). AGGLOMERATION AND WAGE DIFFERENTIALS IN BRAZIL. Revista Da ABET, 21(1). https://doi.org/10.61999/abet.1676-4439.2022v21n1.54931