Labor market and crisis: an analysis of sectoral segmentation in Brazilian rural

Abstract

Abstract: The article aims to analyze which factors contributed to the inequality across income distribution of Brazilian workers in rural areas, occupied in agricultural and non-agricultural activities. Quantile regression with sample selection bias correction and counterfactual decomposition of income by quantiles were applied, using the microdata from the National Continuous Household Survey (PNAD-C) for the years 2012 and 2019. The results showed that there is income inequality favorable to workers occupied in non-agricultural activities concerning agricultural activities, which is intensive for those with lower incomes, as well as for those with high incomes. The presence of sectorial segmentation was also confirmed, of which the largest portion in 2012 corresponds to the labor market duality. However in 2019, in lower quantiles the segmentation obtained greater explanatory power for the difference in income between the groups, while in higher quantiles the theory of human capital prevailed.