Abstract
This paper reports research results on Science Technology Engineering and Mathematics – STEM – wage premium in 10 main Brazilian technologic clusters: Manaus, Ilhéus-Itabuna, Belo Horizonte, Pouso Alegre, Curitiba, Porto Alegre, Florianópolis, Campinas, São Carlos and São Paulo. The study adjusts the Oaxaca decomposition method – which allows using the workers’ occupation as a categorical variable – to estimate the median of the STEM wage premium in each of the clusters. The control variables are age, educational level, and experience, which are proxy variables for human capital. Inspection of data reveals that the STEM workforce is more educated and has more stability in the job. The statistical analysis suggests that the median of the STEM wage premium obtained by workers in the ten clusters is higher than observed in development countries. This may indicate that Brazilian STEM labor force should will is still grow to meet demand.
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