• ISSN: 2010-023X (Print)
    • Abbreviated Title: Int. J. Trade, Economics and Financ.
    • Frequency: Quaterly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Managing Editor: Ms. Shira. W. Lu
    • Abstracting/ Indexing:  Crossref, Electronic Journals Library , EBSCO
    • E-mail: ijtef.editorial.office@gmail.com
HOME > Archive > 2023 > Volume 14 Number 4 (Nov. 2023) >
IJTEF 2023 Vol.14(4): 80-86
DOI: 10.18178/ijtef.2023.14.4.760

The STEM Wage Premium in the Main Brazilian Technology Clusters

P. Bonini* and C. F. Custodio

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.

Index Terms—Average wage difference, STEM wage premium, technology clusters

P. Bonini is with the State University of Santa Catarina, Av Madre Benvenuta, 2037, Florianópolis, SC, 88035-001 Brazil.
C. F. Custodio is with Instituto Brasileiro de Ensino, Desenvolvimento e Pesquisa. SGAN 609, Brasilia, DF, Brazil. E-mail: carolinafcustodio@gmail.com (C.F.C.)
*Correspondence: patricia.bonini@udesc.br (P.B.)

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Cite: P. Bonini* and C. F. Custodio, "The STEM Wage Premium in the Main Brazilian Technology Clusters," International Journal of Trade, Economics and Finance vol.14, no.4, pp. 80-86, 2023.

Copyright © 2023 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

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