Affiliation: | 1. Department of Economics, Loughborough University, Loughborough, Leicestershire, LE11 3TU, UK (e‐mail: t.antonio‐cravo@lboro.ac.uk);2. I would like to thank three anonymous referees for their valuable comments and suggestions. I also thank Adrian Gourlay, Bettina Becker, Huw Edwards and Ahmad H. Ahmad for helpful comments, and André Rodrigues Nagy and Cristiano Aguiar for useful comments that helped in the construction of the data used in this paper. Finally, I would like to thank the Brazilian Ministry of Labour for providing access to RAIS database. |