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Wage gap and the impact of regional segmentation: a study for workers in the sugarcane culture in 2012 and 2019

Abstract:

This study aims to identify the inequalities in wages of workers inserted in the culture of sugarcane in the producing macro-regions of South-Central and North-Northeast and to measure their causes for regional wage gaps. The microdata collected from the Continuous National Household Sample Survey (Continuous PNAD) of 2012 and 2019 were analyzed, and quantile/mincerian regression models with correction of sample selection bias were estimated. Furthermore, the counterfactual wage decomposition of Oaxaca-Blinder was also applied on the average and by quantiles. These results confirmed the difference in workers’ wages between the two selected areas, characterizing those who work in the South-Central as an advantaged group. The wage gap increased in the period, which is greater for low-income employees in 2012, while in 2019, the difference was greater for workers with higher wages. Thus, it was possible to perceive that the regional segmentation is primarily responsible for most of the wage inequalities in both years, relegating the personal and productive characteristics of the worker.

Keywords:
wage gap; regional segmentation; sugarcane; wage decomposition

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