Home/Working Papers/The Structure of Worker Compensation in Brazil, With a Comparison to France and the United States
The Structure of Worker Compensation in Brazil, With a Comparison to France and the United States
Código: WPE – 085
Naércio Aquino Menezes Filho
We employ a comprehensive linked employer-employee data set for Brazil to analyze wage determinants and compare results to Abowd, Kramarz, Margolis and Troske (2001) for French and U.S. manufac- turing. While returns to human capital variables in Brazilian manufacturing exceed those of the other countries, occupation and gender di®erentials are similar. The worker characteristics component of individual compensation accounts for much of the greater wage inequality in Brazil, but the establish- ment-¯xed component has scant explanatory power. Thus, ¯rm- or industry-level factors have little scope for explaining the di®erences in wage inequality. Brazil’s wage structure closely resembles that of France, a country with some similarity in labor-market institutions.