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An Investigation Of The Labour Market Earnings In Deprived Areas: A Test Of Labour Market Segmentation In The Slums

Author

Listed:
  • João Pedro Azevedo

Abstract

This paper presents empirical evidence on the determinants of labour market earnings for males and females in the slums of Rio de Janeiro. The data used is from a survey of 1,704 households at 51 slums from the city of Rio de Janeiro, augmented with contextual information from the 2000 census as well as GIS information on the location of these communities. Several tests of the labour market segmentation hypothesis were implemented. This work suggests that the informal sector can be a rational choice from the workers point of view, in particular at a younger age. In addition, it also supports the existence of selection e_ects, which suggests that occupational choices are non-random, and must be taken into consideration through a two-step estimation of the earnings equation.

Suggested Citation

  • João Pedro Azevedo, 2005. "An Investigation Of The Labour Market Earnings In Deprived Areas: A Test Of Labour Market Segmentation In The Slums," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33rd Brazilian Economics Meeting] 162, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    • Handle: RePEc:anp:en2005:162
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    File URL: http://www.anpec.org.br/encontro2005/artigos/A05A162.pdf
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    Cited by:

    1. Josefa Ramoni & Giampaolo Orlandoni, 2016. "Assessing the loss due to working in the informal sector in Venezuela," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 84, pages 33-58, Enero - J.
    2. Luis Huesca Reynoso & Martha Beatriz Padilla Arriola, 2012. "Empleo, escolaridad y sector informal en la Frontera Norte de México y Chihuahua: expectativas de ocupación en la crisis," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 57-86, November.

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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