Abstract

AbstractThis study aims to analyse the wage differentials between the Brazilian tourism and non-tourism service sectors. The statistics originate from micro-data for the year of 2012, published by the National Household Sample Survey, and released by the Brazilian Institute of Geography and Statistics. Using an econometric model, based on an updated version of the Oaxaca-Blinder decomposition, it was possible to measure wage differentials between workers in both sectors. We report that returns in the non-tourism sector were higher than that of the tourism sector, and also conclude that in the Brazilian service sector, the wage gap is derived from differences in worker characteristics, to the detriment of the tourism industry. Moreover, variables such as schooling and age proved to have weight for the explanation of the wage differential, the latter being taken as a proxy of experience in the labour market.

Highlights

  • Tourism has taken on an increasing importance for the economic performance of many countries and regions across the world, acting as a driver of economic development through generating employment and raising income levels whenever properly managed

  • From 2003 to 2009, this sector grew by 32.4%, whilst the Brazilian economy on the whole expanded 24.6% (Ministério do Turismo do Brasil, 2013), and the stock of formal jobs in tourism activities1 increased from 1.71 million people employed in 2002, to 2.95 million in 2012 (Ministério do Turismo do Brasil, 2013)

  • Results and discussion we first show and discuss the results of the analysis, taking into account the variables associated with the socio-economic characteristics of workers employed in the Brazilian services, whether in tourism or the non-tourism sector, in order to gain an overview of the general profile of the relevant labour markets

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Summary

Introduction

Tourism has taken on an increasing importance for the economic performance of many countries and regions across the world, acting as a driver of economic development through generating employment and raising income levels whenever properly managed. The tourism industry has expanded rapidly in recent decades, benefiting especially from economic growth, increased purchasing power, reduced transportation costs and communication facilities (Barros et al, 2011). Despite being well below the world level, the tourism industry represents 3.6% of Brazilian GDP (Empresa Brasileira de Turismo, 2015). From 2003 to 2009, this sector grew by 32.4%, whilst the Brazilian economy on the whole expanded 24.6% (Ministério do Turismo do Brasil, 2013), and the stock of formal jobs in tourism activities increased from 1.71 million people employed in 2002, to 2.95 million in 2012 (Ministério do Turismo do Brasil, 2013).

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