Determinantes do rendimento das pessoas ocupadas em Minas Gerais em 2000: o limiar no efeito da escolaridade e as diferenças entre mesorregiões [Determinants of earnings of occupied persons in Minas Gerais in 2000 - the schooling threshold effect of and the differences among mesoregions]

Earnings equations for occupied persons in the state of Minas Gerais are estimated using data from the 2000 Demographic Census of Brazil. Such equations allow us to evaluate the effect of age, gender, schooling, color (race), position in the occupation, weekly working time and other factors on earnings, taking into account as well the differences among 12 regions of the state. Data limitations are discussed, particularly the understatement of incomes, and the composition of household income is also analyzed. Regarding the specification of the earnings equations, the paper shows that it is wrong to assume that the influence of schooling can be represented as a linear function, since there is an important threshold effect after 10 years of schooling. The paper also shows that there are important differences among earnings equations fitted for each of the three economic sectors. In agriculture, for instance, the most relevant variable explaining differences in earnings of occupied persons is their position in occupation, and not schooling, while in industry and services the main explanatory variable is schooling.