Association between immigrants and the wages of native Brazilians in the formal labor market

Abstract

This paper seeks to investigate the association between the proportion of immigrants and the wages of native workers in the Brazilian formal labor market, besides exploring possible heterogeneities in this relationship, such as differences in gender, education and job tenure. Data from the Annual List of Social Information (RAIS) for the years 2015 to 2018 and the harmonized database RAIS/ CTPS are used to estimate pooled ordinary least squares regressions. The findings indicate that the proportion of immigrants and native workers’ wages are positively associated, this is in line with the hypothesis that there is a complementarity between the work performed by immigrants and natives, generating increases in specialization and on positive externalities. In summary, the results represent a contribution to the better understanding of how the Brazilian labor market incorporates immigrants, and reinforces the importance of policies aimed at immigration, since it can contribute to the increase of productivity and wages in Brazil.