Formal versus informal workers: Differences of income for the metropolitan region of Belo Horizonte

Authors

  • Jader Fernandes Cirino Professor Adjunto da Universidade Federal de Viçosa - Departamento de Economia
  • Cassiano Ricardo Dalberto Doutorando em Economia pela Universidade Federal de Minas Gerais.

DOI:

https://doi.org/10.4013/pe.2015.112.01

Abstract

The article examines the difference in the Metropolitan Region of Belo Horizonte between formal and informal workers, defined, respectively, as taxpayers and non-taxpayers of Social Security. By the use of the Oaxaca-Blinder decomposition from Melly (2006) and PNAD 2012, it was found that although formal employees receive higher incomes than the informal across all income distribution, the difference not justified by production attributes of the two groups was significant only for the base and top of the income distribution. Thus, it signs of segmentation were noticed in the labor market studied, especially in the highlighted points of the income distribution.

Keywords: labor market, income segmentation, formal and informal sectors.

Author Biography

Jader Fernandes Cirino, Professor Adjunto da Universidade Federal de Viçosa - Departamento de Economia

Departamento de Economia

Área de interesse: Economia do Trabalho, Meio-Ambiente e Microeconomia.

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Published

2015-11-24

Issue

Vol. 11 No. 2 (2015): Jul-Dec

Section

Articles

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