Wage differentials in Brazil: Tourism vs. other service sectors

Figures & data

Figure 1. Oaxaca–Blinder decomposition.

Table 1. Average (or ratio) of the variables associated with the socio-economic characteristics of workers employed in services (tourism and non-tourism sectors), Brazil, 2012

Variables	Tourism	Non-tourism	Services
Age (years)	38.03	37.43	37.53
Schooling (in years)	9.49	11.04	10.75
Taxpayer (%)	60.74	69.79	68.13
Male (%)	66.97	40.45	45.33
Spouse (%)	22.27	29.37	28.06
Children (%)	20.76	22.84	22.46
Another position (%)	6.26	6.05	6.10
White (%)	47.07	50.27	49.68
Trade union (%)	14.53	15.41	15.25
Formal contract (%)	46.98	38.14	39.77
Metropolitan (%)	38.15	36.86	37.10
Urban (%)	94.18	94.26	94.25
North (%)	7.32	7.44	7.42
Northeast (%)	23.34	23.67	23.61
Southeast (%)	46.74	45.63	45.84
South (%)	14.73	14.33	14.41
Mid-west (%)	7.86	8.92	8.72
Children < 14 years (%)	39.17	36.70	37.15
Average monthly salary (R$)	1,394.62	1,553.85	1,524.51
Household income (R$)	1,808.42	2,389.02	2,282.05

Source: Prepared by the authors based on the PNAD 2012.

Table 2. Labour market participation and the paid determinants of worker income in the tourism sector of Brazil, 2012

	Participation equation		Income equation
	Estimated coefficient	Significance	Estimated coefficient	Significance
Constant	3.3313	0.411*	−0.1482	0.068**
North	−0.2635	0.093*	−0.1256	0.026*
Northeast	−0.2267	0.083*	−0.3582	0.021*
South	−0.1157	0.080^ns	−0.0283	0.021^ns
Mid-west	0.0626	0.096^ns	0.0695	0.024*
Male	0.4625	0.052*	0.2944	0.013*
Metropolitan	0.3813	0.064*	0.1633	0.017*
Age	0.0022	0.001*	0.0037	0.000*
White	0.1196	0.058**	0.1502	0.014*
Urban	0.3330	0.091*	0.0769	0.033**
Schooling	0.0653	0.039^ns	0.0616	0.002*
Expschool	−0.0011	0.001***
Children <14 years	−0.0157	0.060^ns
Spouse	−0.6246	0.083*
Children	−0.5137	0.097*
Another position	−0.0238	0.121^ns
Schooling^2	0.0007	0.002^ns
Household income	−0.4025	0.041*
Age^2			−0.0003	0.000*
Taxpayer			0.3630	0.025*
Trade union			0.1022	0.019*
Formal contract			−0.3151	0.023*
Rho			0.6997
Lambda			0.5067

Source: Prepared by the authors based on the PNAD 2012.

Level of significance: not significant, *significant at 1%, **significant at 5%, ***significant at 10%.

Table 3. Decomposition of the logarithm/hour differences between the tourism sector and the non-tourism sector, 2012

Differential of the expected value of the logarithm of income/hour	Coef.	Standard error	Est. “t”	p > z	Income/hour
Non-tourism sector	1.881	0.004	492.700	0.000	5.56
Tourism sector	1.715	0.005	368.280	0.000	4.56
Difference	0.166	0.005	31.330	0.000	18.05
Characteristic effect	0.089	0.005	18.260	0.000	53.60
Segmentation effect	0.032	0.001	21.720	0.000	19.27
Interaction effect	0.045	0.002	29.620	0.000	27.13

Source: Prepared by the authors based on the PNAD 2012.

Table 4. Characteristic decomposition effect of the difference in the logarithm/hour between the tourism and non-tourism sectors of Brazil, 2012

Characteristic effect	Coeff.	Standard error	Est “t”	p > z	% Difference
North	−0.0003	0.0003	−0.9000	0.3670	−0.15
Northeast	−0.0001	0.0016	−0.0800	0.9380	−0.08
South	0.0002	0.0001	2.1000	0.0360	0.14
Midwest	0.0008	0.0002	4.8900	0.0000	0.50
Male	−0.0735	0.0014	−52.9100	0.0000	−44.28
Metropolitan	−0.0013	0.0009	−1.4600	0.1460	−0.79
Age^2	0.0165	0.0036	4.5100	0.0000	9.92
Age	−0.0175	0.0051	−3.4100	0.0010	−10.55
Schooling	0.0963	0.0026	37.1100	0.0000	58.06
Taxpayer	0.0353	0.0019	18.5400	0.0000	21.28
Trade union	0.0010	0.0004	2.5800	0.0100	0.62
Formal contract	0.0273	0.0017	15.9400	0.0000	16.45
White	0.0041	0.0008	5.0500	0.0000	2.46
Urban	0.0000	0.0002	0.2100	0.8350	0.03
Endowments	0.0889	0.0049	18.2600	0.0000	53.60

Source: Prepared by the authors based on the PNAD 2012.

Table 5. Segmentation effect of the decomposition of the logarithm/hour difference between the tourism and non-tourism sectors in Brazil, 2012

Segmentation effect	Coefficients	Standard error	Est “t”	p > z	% Difference
North	0.0043	0.0001	30.3000	0.0000	2.59
Northeast	0.0336	0.0007	48.0400	0.0000	20.24
South	0.0022	0.0001	36.4600	0.0000	1.34
Mid-west	0.0026	0.0001	32.5500	0.0000	1.57
Male	−0.0065	0.0000	−156.9500	0.0000	−3.90
Metropolitan	0.0022	0.0000	65.4600	0.0000	1.31
Age^2	0.0787	0.0005	150.3900	0.0000	47.43
Age	0.0058	0.0000	292.0200	0.0000	3.52
Schooling	0.3257	0.0014	240.2200	0.0000	196.30
Taxpayer	−0.0364	0.0003	−119.7600	0.0000	−21.96
Trade union	0.0134	0.0003	38.8600	0.0000	8.06
Formal contract	0.0232	0.0003	91.9400	0.0000	14.00
White	0.0044	0.0000	89.7100	0.0000	2.68
Urban	0.0689	0.0002	292.1400	0.0000	41.50
Constant	0.0320	0.0015	21.7200	0.0000	19.27

Source: Prepared by the authors based on PNAD 2012.