Agglomeration economies and sorting in determining of space wage workers of Brazil

• Grant number: 14/03077-7
• Support Opportunities: Scholarships in Brazil - Doctorate
• Start date: August 01, 2014
• End date: March 31, 2017
• Field of knowledge: Applied Social Sciences - Economics - Regional and Urban Economics
• Agreement: Coordination of Improvement of Higher Education Personnel (CAPES)
• Principal Investigator: Carlos Roberto Azzoni
• Grantee: Diana Lúcia Gonzaga da Silva
• Host Institution: Faculdade de Economia, Administração e Contabilidade (FEA). Universidade de São Paulo (USP). São Paulo , SP, Brazil

Abstract

The objective of this project is to identify the contribution of the gains from agglomeration (urban wage premium) and sorting for spatial wage determination in Brazil. Data from Raismigra - MTE show that the real wage of Paraíba, in 2008, accounted for only 59% of São Paulo's wages. Such persistent wage differentials in Brazil hasincited research in Labor Economics to identify their determinants, such as the cost of living and the characteristics of workers and jobs. Although wage equations have expanded the number and quality of controls, such as those observed and unobserved skills of workers, there are effects associated with the location of firms and workers that remain unexplained. Studies of Regional and Urban Economics began to focus on agglomeration economies as wage determinant, as from Glaeser and Maré (1994, 2001). In Brazil, there are few studies relating agglomeration economies and wages. In turn, greater productivity in dense urban areas can be attributed to the concentration (selection) of more skilled workers and more productive firms, a phenomenon known in the literature as sorting. The international literature has advanced in the sorting control in the wage determination. Studies in Brazil control only a part of this. Thus, this project has, as justification, contributing to the national literature in control of sorting and gains of agglomeration on wages. The econometric model proposes to control the observed and unobserved skills of workers, the firm effect, the location effect and the employment characteristics. The research proposes the use of micro data from Raismigra - MTE, to estimate expanded mincerian wage equation. (AU)

Scientific publications

(References retrieved automatically from Web of Science and SciELO through information on FAPESP grants and their corresponding numbers as mentioned in the publications by the authors)

SILVA, DIANA; AZZONI, CARLOS. orker and firm heterogeneity, agglomeration, and wages in Brazi. PAPERS IN REGIONAL SCIENCE, v. 101, n. 1, OCT 2021. (14/03077-7)

Academic Publications

(References retrieved automatically from State of São Paulo Research Institutions)

SILVA, Diana Lúcia Gonzaga da. Agglomeration Economies and Heterogeneity of Worker and Firm in the Wage Determination from Brazil. 2017. Doctoral Thesis - Universidade de São Paulo (USP). Faculdade de Economia, Administração e Contabilidade (FEA/SBD) São Paulo.