interest  are  the  worker’s  annual  real  wages  in  Brazilian _reais_<sup>13</sup> ,  tenure  at  the  firm  in  months, gender,  and  age.

We  restrict  observations  as  follows.  First,  we  draw  a  one  percent  random  sample  from  the complete  list  of  workers  ever  to  appear  in  the  national  records.  We  match  the  sampled workers  back  to  the  population  data  to  find  all  firms  in  which  these  workers  were  ever employed  over  time  to  create  a  complete  employment  history  of  this  one  percent  random sample  of  the  population  of  the  Brazilian  formal-­‐sector  labor  force.<sup>14</sup> Next,  we  keep  only workers  with  valid  worker  identification  numbers  to  ensure  that  we  can  track  individuals over  time.  As  is  standard  in  the  literature,  we  include  only  prime-­‐age  workers  between  the ages  of  15  and  64  years,  workers  with  a  positive  average  monthly  wage,  and  workers  in private-­‐sector  jobs.  Finally,  for  workers  with  multiple  jobs  in  a  given  year,  only  the  most recent  job  is  included  in  the  sample.  If  a  worker  has  multiple  current  jobs,  only  the  highest paying  job  is  included.

# **2.3.   Complementary   data**

**Export   Status** Brazilian   firms’   tax   identification   numbers   are   common   across   many databases,   allowing   us   to   match   the   RAIS   data   to   complementary   firm-­‐level   data   sources. Information   on   firm-­‐level   export   transactions   is   available   from   the   Brazilian   Customs   Office ( _Secretaria   de   Comércio   Exterior_ ,   SECEX).   SECEX   records   all   legally-­‐registered   firms   in   Brazil with   at   least   one   export   transaction   in   a   given   year.   We   match   the   SECEX   firm-­‐level   exporter status   data   to   our   RAIS   worker   data   by   the   firm’s   tax   identification   code   to   identify   workers at   exporting   and   non-­‐exporting   firms.   We   define   an   indicator   variable   equal   to   one   if   a worker   holds   a   job   at   a   firm   with   a   positive   dollar   value   of   free-­‐on-­‐board   exports   in   a   given year   and   zero   otherwise.

> occupation   (Elias   and   Birch   1994).   ISCO   occupations   can   be   grouped   into   four   broad   occupational categories   following   Abowd,   Kramarz,   Margolis,   and   Troske   (2001)   to   reflect   the   skill-­‐intensity   of   the occupation.

> 13   RAIS   reports   an   average   monthly   wage   (in   multiples   of   the   current   minimum   wage)   for   each   job   in which   a   worker   is   employed   in   each   year.   In   combination   with   information   on   the   number   of   months a   worker   was   employed   during   the   year   and   deflated   minimum   wage   information   in _reais_ from   the Brazilian   Central   Bank,   we   calculate   an   annual   real   wage   for   each   worker.

> 14   Note   that   any   firm-­‐level   aggregates   we   use   in   our   analysis,   however,   are   based   on   the   complete population   of   workers.

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