The aim of this paper is to examine whether the inter-regional and inter-industry wage differentials in Brazil persist after controlling for the non-observable workers characteristics that are fixed over time. We use data from Raismigra (Labor Ministry) to follow workers that were formally employed in Minas Gerais industry between 1999 and 2001 using a panel data approach. The main results show that the inter-regional and inter-industry wage differentials persist after controlling for individual-specific fixed effects, but lose importance.
wage differentials; migration; panel data; industry of Minas Gerais
