Public-private income gap in Brazil: a counterfactual analysis

Abstract

The study investigated the gap of public-private income through the Decomposition of OaxacaBlinder, quantile regression and Melly’s Quantile Decomposition through the PNAD data of 2013. The results for the Oaxaca Decomposition showed that the total gap, about three quarters are due to productive attributes and the rest is due to sectoral differences between the groups. The quantile regression found a growing behavior of the gap, while quantile decomposition showed that the workers closest to the median quantile have a higher wage premium, and even negative in the last quantile.

Keywords

• Transmission Price
• Commodities
• Vector Error Correction Model.