Economic geography and wages in Brazil: Evidence from micro-data |
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| Authors: | Thibault Fally Rodrigo Paillacar Cristina Terra |
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| Institution: | aPSE – Paris School of Economics, France and University of Colorado at Boulder, United States;bCES – University of Paris 1, Paris School of Economics, France;cUniversité de Cergy-Pontoise: THEMA, France and EPGE –Fundação Getulio Vargas, Brazil |
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| Abstract: | This paper estimates the impact of market and supplier access on wage disparities across Brazilian states, incorporating the control for individual characteristics into the new economic geography methodology. We estimate market and supplier access disaggregated by industry, and we compute access to local, national and international markets separately. We find a strong correlation between market access and wage differentials, even after controlling for individual characteristics, market access level (international, national or local), and using instrumental variables. |
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| Keywords: | Economic geography Market potential Regional disparities Brazil Wage equation |
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