Returns to education of Workers with Higher Education in Southern Brazil:
are the social and economic characteristics of the municipalities matter?
Abstract
The paper analyzes the return to education of graduated workers in southern Brazil, considering the effects of individual characteristics and, above all, the influence of labor market, social and economic variables in the municipalities on the income of graduated workers. To capture the effects of these variables, earnings equations were estimated using two-level hierarchical models. Data from the 2010 Demographic Census were used. The results showed that there is a differential in the return according to the course chosen by the individual. Master Science and Ph.D. have positive influence on returns to education. The local conditions of the municipalities influence the returns to education of graduated workers, highlighting the unemployment rate positive effect of the on the return to education. Graduated workers are more protected from economic crises than others. The policies to promote social development and economic growth in municipalities generate important impacts on the remuneration of workers with higher education.
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