The sorting effect on wages in the formal labor market: An analysis of administration, accounting and economics graduates from a public university in Brazil

This article tests the hypothesis of the existence of a sorting effect on the remuneration of graduates in a Brazilian public university, combining identifiable data of graduates and records of the formal labor market in 2017. The estimation of remuneration equations and the decomposition of Oaxaca allow to observe higher remunerations for the graduates in the institution, in comparison to other workers of similar characteristics and occupations. The results are compatible with the hypothesis of a sorting effect, in which the institution's diploma reveals innate characteristics of workers to employers.