Convergência de salários entre as regiões metropolitanas brasileiras: custo de vida e aspectos de demanda e oferta de trabalho

Abstract

The wage inequality among people of different regions can be explained by three factors. From the point of view of labor supply, higher wage levels in a region can reflect higher educational levels of its inhabitants, leading to better conditions for participating in the labor market. From the labor demand point of view, wage inequality might reflect differences in productive structure, institutions, and access to technology. Differences in cost of living and amenities are the third possible explanation. This paper considers these three factors in analyzing the dynamics of regional wage inequality among Brazilian metropolitan regions. We use panel data from the Brazilian household survey (Pnad) aggregated in cohorts for nine metropolitan regions to estimate a model of convergence controlling for fixed-effects. The results indicate that cost of living differences, although relevant, are not capable of individually explaining differences in the changes in regional wage inequality. Labor demand (regional characteristics) and labor supply (human capital) aspects have important roles in determining the dynamics of regional wage inequality in Brazil.