Wage differentials of outsourced workers in Brazil

Authors

  • Guilherme Stein Fundação de Economia e Estatística Siegfried Emanuel Heuser
  • Eduardo Zylberstajn Fundação Getúlio Vargas. Escola de Economia de São Paulo
  • Hélio Zylberstajn Universidade de São Paulo. Faculdade de Economia, Administração e Contabilidade

DOI:

https://doi.org/10.1590/0101-41614736heg

Keywords:

Labor Market, Outsourcing, Wage Differentials

Abstract

This paper estimates the wage differentials between outsourced and in-house workers in Brazil.
The simple comparison of average wages of the two groups indicates that outsourced workers earn 17% less, but after controlling by workers fixed effects, the difference drops to 3.6%. In addition, we show that there is great heterogeneity in the wage differential. Telemarketing workers earn 8% less when outsourced. On the other hand, occupations such as security and
surveillance offer statistically higher wages, on average, to outsourced workers. The evidence also indicates that the unfavorable differential to the outsourced showed an increase between 2007 and 2012 and a decrease after then.

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Author Biographies

  • Guilherme Stein, Fundação de Economia e Estatística Siegfried Emanuel Heuser

    Pesquisador de Economia

  • Eduardo Zylberstajn, Fundação Getúlio Vargas. Escola de Economia de São Paulo

    Professor

  • Hélio Zylberstajn, Universidade de São Paulo. Faculdade de Economia, Administração e Contabilidade

    Professor

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Published

30-09-2017

Issue

Vol. 47 No. 3 (2017)

Section

Articles

License

Copyright (c) 2017 Guilherme Stein, Eduardo Zylberstajn, Hélio Zylberstajn

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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

By submitting an article, the author authorizes its publication and attests that it has not been submitted to any other journal. The original article is considered final. Articles selected for publication are proofread for grammatical and orthographic errors. The journal does not pay rights for published articles. The Institute of Economic Research from the School of Economics, Business and Accounting of the University of São Paulo (Instituto de Pesquisas Econômicas da Faculdade de Economia, Administração e Contabilidade da Universidade de São Paulo) owns the journal's copyright.

How to Cite

Stein, G., Zylberstajn, E., & Zylberstajn, H. (2017). Wage differentials of outsourced workers in Brazil. Estudos Econômicos (São Paulo), 47(3), 587-612. https://doi.org/10.1590/0101-41614736heg