The Brazilian wage curve: new evidence from the National Household Survey

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. We also find that males in Brazil are significant...

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Bibliographic Details
Published in:Empirical economics 2017-08, Vol.53 (1), p.267-286
Main Authors: Baltagi, Badi H., Rokicki, Bartlomiej, de Souza, Kênia Barreiro
Format: Article
Language:English
Subjects:
Econometrics
Economic conditions
Economic models
Economic theory
Economic Theory/Quantitative Economics/Mathematical Methods
Economics
Economics and Finance
Finance
Insurance
Management
Polls & surveys
Statistics for Business
Unemployment
Wages & salaries
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Summary: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. 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.
ISSN:0377-7332
1435-8921
DOI:10.1007/s00181-016-1105-5