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Workers Earnings Determinants in Brazil: the Threshold Effect on Schooling and the Difference between States

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The paper comprises a human capital investments empirical analysis and its effects over earnings, in order to estimate the return to schooling on earnings. Using 2014 National Household Sample Survey microdata, earnings equations are specified with Heckman’s sample selection model for bias correction for each brazillian state to test the hypothesis that there’s a threshold effect on return to schooling, check its effects on return to schooling and differences between states.