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Wage inequality in municipalities of Ceará: an application of Oaxaca decomposition

Economic development policies are adopted everywhere in the World. In the case of Ceara, the option made was to elect, unquestionably, an industrial policy in order to achieve higher levels of economic development. In this context, the attraction of productive investments is an instrument that is often used. Another feature of such a policy is that it also aims to improve economic conditions in municipalities that are not part of the most developed region in the State. In this way, this article verify if this politics is affecting the work market in the municipalities of the Ceará. In this intention, the decomposition of Oaxaca was used to mesure the differential of wages between the municipalities. As a result of such endeavours, however, it is possible to observe a considerable dispersion in wages among municipalities in Ceara, specially if the ones receiving new factories are compared to the others.

industrial policy; attraction of investiments; Ceará economic


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