Effect of education on the main job income of Brazilian formal workers

a pseudo-panel analysis

Authors

DOI:

https://doi.org/10.61999/abet.1676-4439.2024v23n1.64880

Abstract

This paper analyzes the wage return to education for formal workers, by gender, in Brazil, based on the Mincer equation. The effect of education on the main labor income is modeled over a 20-year interval and controls for unobserved heterogeneity and sample selection biases. To this end, we pooled data from the National Household Sample Survey for the years 1995 and 2015. We applied Heckman’s two-stage, and the results showed an increasing return to education at the analyzed education levels for all genders. However, this return declined over time. The greatest effect is on men’s wages in 2015, while for women it was greater in 1995. The agricultural sector was the most penalized in terms of wage returns and the wage return for men decreased in 2015 in all sectors, while for women there was a wage increase in most of them, which helped reduce the wage gap between genders.

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Author Biographies

Wiron José Saraiva Matos, Federal University of Viçosa

Mestrado em Economia pela Universidade Federal de Viçosa (UFV). Graduação em Ciências Econômicas pela UFV. Durante a graduação atuei pela Empresa Júnior de Economia (EJESC-UFV) e pela Liga Universitária Viçosense de Esportes (LUVE-UFV).

Francisco Carlos da Cunha Cassuce, Federal University of Viçosa

Possui graduação em Ciências Econômicas pela Universidade Federal de Viçosa (2002), mestrado em Economia Aplicada pela Universidade Federal de Viçosa (2004) e doutorado em Economia Aplicada pela Universidade Federal de Viçosa (2008). Atualmente é Professor Associado da Universidade Federal de Viçosa.

Evandro Camargos Teixeira, Federal University of Viçosa

Bachelor's at Economia from Universidade Federal de Juiz de Fora (2002), master's at Economy from Universidade Federal do Paraná (2005) and doctorate at Economia Aplicada from Escola Superior de Agricultura Luiz de Queiroz (2011). Has experience in Economy, focusing on Economy of Social Well-being, acting on the following subjects: crime, Curitiba-PR, Contagem-MG, Brasil and hedonic prices.

Rafael Faria de Abreu Campos, Universidade Federal de Viçosa

Professor (2022) at the University Center of Viçosa (Univiçosa), a Post-Doctoral Fellow in Applied Economics at the Department of Rural Economics of the Federal University of Viçosa (DER/UFV), a Researcher of the Center for Studies in Applied Economic and Environmental Modeling of the Center for Regional Planning and Development in the Federal University of Minas Gerais (Nemea/Cedeplar/UFMG) and of the Innovation & Development Group (Gpid) at the Management & Accounting Department of the Federal University of Viçosa (DAD/UFV), and a Coordinator of the Urban and Regional Economics Working Group (URE-WG) at the Young Scholars Initiative (YSI) of the Institute for New Economic Thinking (INET). Dr. Campos is Ph. D. in Applied Economics (2021) from the Federal University of Minas Gerais (Cedeplar/UFMG), M. Sc. in Applied Economics (2016) from the Federal University of Viçosa (PPGEA/UFV), Graduate in Economic Sciences (2014) from the Federal University of Viçosa (DEE/UFV), and Technician in Business Administration (2008), with an emphasis in Business Management, from the General Edmundo de Macedo Soares e Silva Center of Technological Education (CET/CSN Foundation). Dr. Campos was a Professor (2022) at the Araguaia University Center (UniAraguaia), an Adjunct Professor (2020-2022) at the Federal University of Viçosa (DEE/UFV), a Fulbright Visiting Scholar (2018-2019) at the Regional Economics Applications Laboratory at the University of Illinois at Urbana-Champaign (REAL/UIUC), a Consultant (2017-2018) of the Brazilian Agricultural Research Corporation (Embrapa) in the Sustainable Rural Project (PRS), and a Researcher (2016-2017) at the Economics Subnet at the Brazilian Network of Research on Global Climate Change (Climate Network), and he has experience in Applied Economic and Environmental Modeling mainly via Agent-Based Modeling, Systems Dynamics, Social Network Analysis, Computable General Equilibrium, and Quantitative Methods. Practice area: Agricultural and Natural Resource Economics.

Published

2024-09-17

How to Cite

Saraiva Matos, W. J., da Cunha Cassuce, F. C., Camargos Teixeira, E., & Faria de Abreu Campos, R. (2024). Effect of education on the main job income of Brazilian formal workers: a pseudo-panel analysis. Revista Da ABET, 23(1). https://doi.org/10.61999/abet.1676-4439.2024v23n1.64880