Migrant workers in the Brazilian formal labour market

Abstract

In the last decade, Brazil has been experiencing a new cycle of international migration. The migrant population living in Brazil grew by 20% approximately, according to International Organization for Migration. The objective of this paper is to analyse the insertion of foreign workers in the Brazilian formal labour market, investigating returns to schooling of migrants compared with natives and the positive or negative discrimination that can exist in the formal job market. To perform the research of this paper, the Annual Report on Social Information database is used, analysing the period from 2010 to 2017. The methodology used to calculate the rate of return on education of native and foreign workers is based on Mincer's equation. Mincer’s equation is estimated econometrically, in which the dependent variable, the log of wage or labour income, is regressed in years of schooling of the person and other controls. The return to education demonstrates a positive discrimination of international formal workers in Brazil and a convergence in return rates between native and immigrants: international return rate is approximately 37% in 2010 and approximately 20% in 2017, while native return rate remains constant during the period, approximately 15%.