This article measures the degree of segmentation in the Brazilian labor market. Controlling for observable and unobservable characteristics, workers earn more in the formal sector, which supports the segmentation hypothesis. We break down the degree of segmentation by socioeconomic attributes to identify the groups where this phenomenon is more prevalent. We also investigate the robustness of our findings to the inclusion of self-employed individuals.
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Botelho et al. (2010) studied this question.