Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/103518
Authors: 
Baltagi, Badi H.
Rokicki, Bartlomiej
Barreiro de Souza, Kênia
Year of Publication: 
2014
Series/Report no.: 
IZA Discussion Papers 8468
Abstract: 
This paper reconsiders the Brazilian wage curve using individual data from the National Household Survey at 27 Federative Units over the period 2002 - 2009. We find evidence in favor of the Brazilian wage curve with an unemployment elasticity of -0.08 when the lagged unemployment rate is used as an instrument for current unemployment rate. We also find that males in Brazil are significantly more responsive to local unemployment rates (-0.13) than their female counterparts. In fact, we find that the unemployment elasticity for women is statistically insignificant. Applying gender specific unemployment rates, the elasticity for men decreases to -0.09, while the elasticity for women remains statistically insignificant. This paper also finds that the estimates for Brazilian wage curve are completely different for the case of formal and informal workers.
Subjects: 
wage curve
fixed effects
regional labor markets
household surveys
informal workers
JEL: 
C26
J30
J60
Document Type: 
Working Paper

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