Wage differences of rural and urban workers in the states of Amazonas and Pará
Abstract
This paper analyses the salary differences between rural and urban workers in the states of Amazonas and Pará. This analysis was conducted for the two largest states in northern Brazil, as they have different socioeconomic and labor market characteristics. Specifically, we examine the extent to which investment in human capital and non-productive attributes affect income differences. We used the Continuous National Household Sample Survey for 2011, 2013, and 2015. We find that highly educated and experienced workers obtain higher wage increases through the fixed-effects pseudo-panel and Oaxaca-Blinder methodologies. Urban workers earn higher wages than rural workers, as well as those residing in the state of Pará. In the state of Amazonas, the wage difference is impacted by non-productive attributes explained by segmentation in the labor market, such as government administration and other activities in contrast to the agricultural sector.
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Copyright (c) 2023 Enimar Jerônimo Wendhausen, Marília Carvalho Brasil, Frederick Fagundes Alves, Lucas Vitor de Carvalho Sousa
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