WAGE DIFFERENTIALS IN THE NORTHEAST REGION: AN ANALYSIS BY MIGRATION CONDITIONS AND EDUCATIONAL LEVEL

Abstract

This paper analyzes income differentials between migration conditions by educational level in the Northeast region. From the data of the PNAD of 2014, the method proposed by Lee (1983) was employed in the wage equations to correct the potential problem of selection bias in the sample. In order to evaluate the wage differentials between migrants and non-migrants and between categories of migrants, the decomposition proposed by Oaxaca (1973) and Blinder (1973) was used. The findings suggest that for each completed educational segment a wage increase is generated, with a higher return on education achieved mainly by return migrants. And, the results of wage decompositions indicate that migrants have higher incomes when compared to non-migrants. In addition, it was also found that having at least one undergraduate degree increases the salary difference of migrants vis-à-vis those who decide not to migrate and among migrant groups.