AN ANALYSIS OF WAGE INEQUALITIES IN THE FORMAL AND INFORMAL SEGMENTS OF THE SOUTHERN AND NORTHWEST

Abstract

In Brazil, a debate present both in the academic environment and among public managers is the impact that informality causes for the worker and for the whole society, either directly or indirectly, and given the large territorial extension of the country, this discussion must consider both their regional specificities and the Brazilian worker. In this context, the present research aims to analyze the difference in income between workers in the formal and informal segment in the South and Northeast regions of Brazil, contributing to the debate and advancement in this area. With data from the 2019 Continuous National Household Sample Survey and through the estimation of a Mincerian equation obtained by quantile regression and Oaxaca-Blinder decomposition by quantiles, it can be verified that, in fact, there is a difference in the income of the formal and informal, with wage differences in favor of formal workers in the Northeast region, predominant from the 50th quantile of the distribution, while for the South, wage differences in favor of the formal segment were observed only in the first quantiles of the distribution.