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/lp/american-economic-association/the-agricultural-wage-gap-evidence-from-brazilian-micro-data-DrdyL04ZRl
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- Publisher
- American Economic Association
- Copyright
- Copyright © 2020 © American Economic Association
- ISSN
- 1945-7715
- DOI
- 10.1257/mac.20170436
- Publisher site
- See Article on Publisher Site
Abstract
AbstractA key feature of developing economies is that wages in agriculture are below those of other sectors. Using Brazilian household surveys and administrative panel data, I use information on workers who switch sectors and workers with multiple jobs to assess the role of worker composition in explaining this gap. The evidence is consistent with the presence of significant intersector sorting in Brazil. A calibrated sorting model can account for the wage gap level observed, as well as its decline, as the economy transitioned out of agriculture. (JEL J24, J31, J43, O13, Q10)
Journal
American Economic Journal: Macroeconomics – American Economic Association
Published: Jan 1, 2020