Admission to first job and reemployment in the braziliannortheast: an analysis of wage differentials
International Journal of Development Research
Admission to first job and reemployment in the braziliannortheast: an analysis of wage differentials
Received 13th June, 2019; Received in revised form 21st July, 2019; Accepted 08th August, 2019; Published online 28th September, 2019
Copyright © 2019, Lídia Silveira Arantes et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
The paper aims to investigate the main determinants of wages, based on comparative analyzes between the salary of workers admitted to the first job and reemployment, in the formal labor market of the Northeast region. The guiding question is:is there a wage discrepancy between individuals who were admitted to the first job and those who were re-employed. As for the methodology, econometric techniques were applied. The present study confirmed a priori expectations that young people between the ages of 14 and 24 are the most affected by unemployment. The difficult insertion of young people into the formal labor market leads to relatively lower starting salaries for young people without professional experience. The data showed that workers with higher levels of education (higher education) receive, on average, a salary 69% higher than the illiterate worker. However, the discrepancy has declined over the past few decades.