Intranational Outsourcing: the segmentation of the Brazilian Automotive Industry, a wage approach

Abstract

This study analyzes regional wage disparities in the automotive industry, investigating whether workers with similar characteristics receive different remuneration in different states of Brazil, reflecting intranational outsourcing strategies of companies. The analysis uses Quantile Decomposition and the results show that the geographic location of the employee is a determining factor for wage differentials, regardless of the salary level. Workers outside the São Paulo automotive hub receive lower average wages. The results indicate a positive correlation between union concentration in these regions and the implementation of new production hubs