Determinantes do rendimento das pessoas ocupadas

Abstract

Earnings equations for occupied persons in the state of Minas Gerais are estimated using data from the 2000 Demographic Census of Brazil. Such equations allow us to evaluate the  effect of age, gender, schooling, color (race), position in the occupation, weekly working time and other factors on earnings, taking into account as well the differences among  12 regions of the state. Data limitations are discussed, particularly the understatement of incomes, and the composition of household income is also analyzed. Regarding the specification of the earnings equations, the paper shows that it is wrong to assume that the influence of schooling can be represented as a linear function, since there is an important threshold effect after 10 years of schooling. The paper also shows that there are important differences among earnings equations fitted for each of the three economic sectors. In agriculture, for instance, the most relevant variable explaining differences in earnings of occupied persons is their position in occupation, and not schooling, while in industry and services the main explanatory variable is schooling.