Falling urban wage premium and inequality trends: evidence for Brazil

In this paper, we use data from the National Household Survey (PNAD) for Brazil to investigate the dynamics of the urban wage premium and the relationship between the urban wage premium and inequality trends, and we find two main results. First, we find a decreasing urban wage premium over the perio...

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Bibliographic Details
Authors: Oliveira Cruz, Bruno de, Naticchioni, Paolo
Format: article
Publication Date:2012
Country:España
Institution:Universidad de Alcalá (UAH)
Repository:e_Buah Biblioteca Digital Universidad de Alcalá
Language:English
OAI Identifier:oai:ebuah.uah.es:10017/27061
Online Access:http://hdl.handle.net/10017/27061
Access Level:Open access
Keyword:Urban wage premium
Wage inequality
Brazil
Prima salarial urbana
Desigualdad salarial
Brasil
Economía
Geografía
Sociología
Economics
Geography
Sociology
Description
Summary:In this paper, we use data from the National Household Survey (PNAD) for Brazil to investigate the dynamics of the urban wage premium and the relationship between the urban wage premium and inequality trends, and we find two main results. First, we find a decreasing urban wage premium over the period 2002-2009 using both OLS and quantile regression. Second, we show that the fall in the urban wage premium is more pronounced at the 90th percentile than at the 10th percentile. This finding suggests that the falling urban wage premium has contributed to the reduction in inequality observed in Brazil in the last decade.