Labor market and crisis: an analysis of sectoral segmentation in Brazilian rural

Mantovani, Gabriela Gomes; Staduto, Jefferson Andronio Ramundo; Nascimento, Carlos Alves do

doi:10.1590/1806-9479.2021.249112

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Revista de Economia e Sociologia Rural

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Article • Rev. Econ. Sociol. Rural 60 (4) • 2022 • https://doi.org/10.1590/1806-9479.2021.249112 copy

Labor market and crisis: an analysis of sectoral segmentation in Brazilian rural¹ 1 The present study was carried out with the support of the National Council for Scientific and Technological Development - Brazil (CNPq).

Mercado de trabalho e crise: uma análise da segmentação setorial no meio rural brasileiro

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract:

The article aims to analyze which factors contributed to the inequality across income distribution of Brazilian workers in rural areas, occupied in agricultural and non-agricultural activities. Quantile regression with sample selection bias correction and counterfactual decomposition of income by quantiles were applied, using the microdata from the National Continuous Household Survey (PNAD-C) for the years 2012 and 2019. The results showed that there is income inequality favorable to workers occupied in non-agricultural activities concerning agricultural activities, which is intensive for those with lower incomes, as well as for those with high incomes. The presence of sectorial segmentation was also confirmed, of which the largest portion in 2012 corresponds to the labor market duality. However in 2019, in lower quantiles the segmentation obtained greater explanatory power for the difference in income between the groups, while in higher quantiles the theory of human capital prevailed.

Keywords:
income differences; rural labor market; quantile regression; income decomposition

Variables	2012		2019
Variables	Agricultural activity	Non-agricultural Activity	Agricultural activity	Non-agricultural activity
Weekly worked hours (average)	38.74	38.32	37.56	36.60
Experience (average)	30.12	22.50	30.65	23.82
Years of study (average)	5.19	8.15	6.28	9.10
Income month (average)	1,103.58	1,283.46	1,108.38	1,260.62
Income hour (average)	6.33	8.35	6.72	8.18
Age (average)	40.31	35.65	41.93	37.91
Woman (%)	23.62	44.61	21.98	45.49
Man (%)	76.38	55.39	78.02	54.51
White (%)	39.75	40.45	36.46	36.92
Nonwhite (%)	60.25	59.55	63.54	63.08
Head of family (%)	55.11	41.19	53.74	43.45
Formal (%)	27.69	50.12	35.81	50.23
Informal (%)	72.31	49.88	64.19	49.77
Northern (%)	12.81	11.72	17.15	12.70
Northeastern (%)	41.65	43.41	34.73	41.75
Southern (%)	19.00	16.81	19.02	16.54
Southeastern	21.22	23.27	21.69	24.00
Midwestern (%)	5.19	4.19	7.05	3.96
Distrito Federal (%)	0.13	0.60	0.36	1.05
Number of sample observations	29,067 (60.27%)	19,159 (39.73%)	25,069 (56.15%)	19,580 (43.85%)

	Agricultural activities						Non-agricultural activities
Quantiles	2012			2019			2012			2019
Quantiles	%	Cum	HI	%	Cum	HI	%	Cum	HI	%	Cum	HI
10^th	11.15	11.15	1.32	11.13	11.13	1.37	10.65	10.65	2.23	11.11	11.11	2.26
30^th	22.20	33.35	2.95	22.44	33.57	3.15	22.68	33.33	4.64	22.25	33.36	4.80
50^th	23.26	56.61	4.46	21.76	55.33	4.95	22.23	55.56	6.05	22.17	55.53	5.79
70^th	21.20	77.81	6.17	23.77	79.10	6.93	22.21	77.77	8.52	21.94	77.47	8.66
90^th	22.19	100.00	11.64	20.90	100.00	12.37	22.23	100.00	14.75	22.53	100.00	15.01

Quantile	2012
Quantile	10^th	30^th	50^th	70^th	90^th
Effect explained
Coefficients	-0.0318	0.0492	0.0310	-0.0545	-0.0032
	-6.56%	9.87%	11.66%	-18.14%	-1.27%
Sectorial segmentation effect
Coefficients	0.5170*	0.4495*	0.2348*	0.3550*	0.2597
	106.56%*	90.13%*	88.34%*	118.14%*	101.27%
Total difference
Coefficients	0.4852*	0.4987*	0.2658*	0.3005*	0.2564*
	100.00%*	100.00%*	100.00%*	100.00%*	100.00%*
Quantile	2019
Quantile	10^th	30^th	50^th	70^th	90^th
Effect explained
Coefficients	0.0273	0.1908*	0.0921**	0.1209**	0.1145
	5.63%	39.52%*	40.89%**	49.42%**	65.21%
Sectorial segmentation effect
Coefficients	0.4571*	0.2920*	0.1332*	0.1238**	0.0611
	94.37%*	60.48%*	59.58%*	50.58%**	34.79%
Total difference
Coefficients	0.4844*	0.4828*	0.2253*	0.2447*	0.1756*
	100.00%*	100.00%*	100.00%*	100.00%*	100.00%*

Sociedade Brasileira de Economia e Sociologia Rural Av. W/3 Norte, Quadra 702 Ed. Brasília Rádio Center Salas 1049-1050, 70719 900 Brasília DF Brasil, - Brasília - DF - Brazil
E-mail: sober@sober.org.br

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[1] Source: Elaborated by the authors from the microdata of PNAD-C 2012 and 2019.

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Labor market and crisis: an analysis of sectoral segmentation in Brazilian rural1 1 The present study was carried out with the support of the National Council for Scientific and Technological Development - Brazil (CNPq).

Mercado de trabalho e crise: uma análise da segmentação setorial no meio rural brasileiro

Abstract:

Labor market and crisis: an analysis of sectoral segmentation in Brazilian rural¹ 1 The present study was carried out with the support of the National Council for Scientific and Technological Development - Brazil (CNPq).