The aim of this paper is to provide empirical evidences of compensating wage differentials for Brazilian manufacturing firms. This theory states that higher injury risk industries would pay higher wages in order to attract workers - it implies a tradeoff between wages and job amenities. The empirical evidences of this paper are similar to stylized facts of the literature: omitted variables bias provides underestimated values for the injury risks coefficient, but after controlling the unobserved heterogeneity of workers the coefficient becomes positive and significant.
compensating wage differentials; industry wage differentials; wage determination
