Wage Discrimination and Place of Residence
Brazilian Journal of Applied Economics, Vol. 12, No, 3, pp. 443-461, São Paulo, July-September 2008
20 Pages Posted: 11 Jan 2005 Last revised: 16 Feb 2012
Date Written: December 1, 2004
Abstract
This article tests the hypothesis of wage discrimination generated by the place of residence. Furthermore, four alternative explanations for the correlation between wages and place of residence are tested. The econometric results are robust to both a large set of explanatory variables and different econometric specifications. The instrumental variable and the 3 Stages Least Squares approach are used to correct both the endogeneity of the place of residence and the omission of the variable ability (ability bias). After all, the results suggest expressive wage punishment against workers that lived in poor areas.
Keywords: Wage discrimination, spatial discrimination, place of residence
JEL Classification: J71, J31
Suggested Citation: Suggested Citation
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