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  • Based on this quantile Mincer equations

    2018-10-30

    Based on this, quantile Mincer equations are estimated to verify the impact of explanatory variables on every income distribution quantile, allowing for the occurrence of differentiated effects when stratifying workers’ income distribution by occupation. In proceeding so, an investigation is conducted within each quantile about the lag between workers’ income caused by gender, and region differences, according to the methodology by Machado and Mata (2005), which expands the formulation of the Blinder–Oaxaca decomposition (Blinder, 1973; Oaxaca, 1973). For this purpose, the conditional wage distributions of these categories are estimated via quantile equations, marginal distributions are obtained, when comparisons are made between the above mentioned categories, they make it retinoid x receptor possible to decompose the income distributions into two components; one that comes from observable characteristics of workers and another from the returns to these characteristics, which may be interpreted as discrimination. One of the earliest proposals was made by Erickson et al. (1979) which was later honed by Goldthorpe et al. (1987), who designed a scheme known as EGP (initials of the previous authors), as well as Erickson and Goldthorpe (1987, 1992) who proposed the CASMIN project (Comparative Analysis of Social Mobility in Industrial Nations). The CASMIN and EGP models comprise all working categories into seven broad occupational classes, whose purpose is centered on the analysis of labor mobility in the industrial realities of various European Union countries. Although Hout and Hauser (1992) recognize that the CASMIN model treats the main aspects of labor mobility related to hierarchy, inheritance and labor sectors parameters on solid theoretical rationale, they make some criticisms for not detailing as much information as possible about the pattern of social mobility, such as the status and prestige of the working category from the origin to the destination as well as the distance between origin and destination on the rate of mobility. They end up breaking each of the before five categories into two others which accounted for a total of twelve working classes. Since the reasoning for this is solely to explain mobility rate, which is not undertaken here, we kept the EGP/CASMIN classification in this paper. Many other grouping formulations came up, but all of them are like to EGP proposal. Silva and Roditi (1988) formulation stands out for incorporating significant insights for the identification of similarities and differences between categories, such as the dichotomous rural/urban sectors and manual/non-manual labor, so he grouped the numerous categories into eighteen sets. Nevertheless, such scheme has not been widely used due to its analytical difficulty, so researchers have been opting for the implementation of a grouping proposal which contains a lower number of categories. It is expected that this study sheds some light on the debate about this subject as we proceed an analysis of the earning distributions in the quantiles among the established varieties of occupations by individual characteristics, and identify the factors that affect them. To implement the EGP scheme, firstly a recoding of the PNAD (Brazil\'s National Household Sampling Survey) data is done in order to group those various occupational categories into just seven sets, and then an analysis of the Brazilian job market by occupational categories is performed. Such analysis is approached by the estimation of Mincerian quantile equations and by identifying and decomposing the existing hiatus between men\'s income and women\'s incomes, whites and non-whites, individuals who reside in retinoid x receptor the Northeast region or in another more-developed region (namely the South, the Southeast or the Midwest). Besides verifying the strata in which the applied explanatory variables affect the income distribution, this procedure makes possible the detection of distortions that may occur between personal attribute effects and in addition pollination also detects the existence of likely effects such as glass ceiling or sticky floor, as previously seen in economic literature. Once the distribution strata that are affected by each factor are identified, it becomes less difficult to implement policies that aim to reduce income inequalities, which leads to the improvement of workers’ well-being.