Wage disparities of the formal and informal work in the creative industry of Brazil and the differences between brazilian regions

ABSTRACT


INTRODUCTION
The Creative Economy (CE) has often been discussed as a way to achieve economic, regional, and sustainable growth and development.According to Florida (2012), innovation and creativity increase as there is a reduction in social inequality in most developed countries.
The term Creative Industry (CI) began to be discussed in Australia, in 1994, as an incentive for local development.The Australian Prime Minister, Paul Keating, initiated the discussion of creative work and the role of New Information and Communication Technologies as an alternative to improve the country's economy and competitiveness through the Creative Nation project.As a result, public policies were created in Australia to take advantage of the opportunities brought by globalization and recognize the importance of the country's cultural and artistic identity (GZVITAUSKI, 2021;REIS, 2008).
However, only in 1997, the term Creative Industry began to be disseminated with greater intensity, and several countries began to adopt this term.In 1997, the Prime Minister of the United Kingdom (UK), Tony Blair, observing the increase in competitiveness between countries, began to look for alternatives to increase the country's growth.So a Ministerial Task Force was set up to analyze UK national accounts and identify sectors that had a growth trend and competitive advantage.
Thirteen sectors with the greatest potential were identified, and they were categorized as Creative Industries (REIS, 2008;SANTOS-DUISENBERG, 2008).
A few years later, in 2001, the concept of what would be the broader set that encompasses CI, the so-called Creative Economy, emerged (DIAS; LIMA, 2021LIMA, , p. 1070;;UNCTAD, 2010).However, this concept can be understood as a set of economic activities that use intellectual property and knowledge.CE aims to offer goods and services that originate from creativity and have the potential to generate employment and income.In addition, CE can generate a positive externality, contributing to human development, cultural diversity, and social inclusion (UNCTAD, 2010, p.10;NOVA SCOTIA, 2012, p.5).
The Creative Industries (CIs), in turn, are the cycles of creation, production, and distribution of products and services originating in the sector.CI consists of activities that use intellectual capital as a primary input.And it focuses mainly on the arts, which potentially generate sales revenue and intellectual property rights, however, it is not limited to the arts (UNCTAD, 2010).
CI is classified into groups and subgroups to better identify and measure sectors.The United Nations Conference on Trade and Development (UNCTAD, 2010) divides CI into four major groups: Heritage, Art, Media, and Functional creations.In Brazil, this classification was reformulated for the local reality, being further divided into four major creative areas: Consumption, Media, Culture, and Technology (FIRJAN, 2022).
According to Nyko and Zendron (2018, p.03), the Creative and Cultural Industries reached an estimated world market value of US$ 2.5 trillion in 2013.And about 29.5 million people, equivalent to 1% of the active population in the world, were employed in any of the industries that make up CI.The trend was for CI growth to remain above world growth.According to the authors, Brazil had even more growth potential because of its vast domestic market and notorious cultural wealth and creativity.
According to UNCTAD (2022), exports of creative goods between 2006 and 2020 grew by an average of 3.5% per year, while total exports grew by an average of 2.4% per year.In Brazil, the Federation of Industries of the State of Rio de Janeiro (FIRJAN, 2022) concluded that CI tends to show growth rates of the Gross Domestic Product (GDP) higher than the growth rates of the economy in general.For example, in 2018, the Brazilian GDP reached an annual real growth rate of 1.8% when compared to 2017.On the other hand, CI presented a real growth rate of 4.8%.(ARAÚJO; OLIVEIRA; SILVA, 2013;UNCTAD, 2022;FIRJAN, 2022).All this increases the dynamics of the economy, raises economic growth, and generates more jobs, especially for the most qualified people.
Considering the accelerated growth pace of CIs in the world and Brazil, we are going to analyze the salary differences of the Creative Industry activities in Brazil compared with the salary income of other economic activities and determine if there is a salary disparity between the Brazilian regions.Our research hypothesis is that the Creative Industry offers the highest wages when compared to other sectors and economic activities.And that there is a concentration of skilled labor in certain regions of the country.
To answer this research problem, we must analyze the wage earnings of workers active in Brazilian economic activities in general and compare them with the earnings of workers active in Creative Industry activities.For this, we will identify the activities belonging to the Brazilian CI and estimate an econometric model of the income of CI workers for the Brazilian regions.This research innovates by quantifying the existing wage disparities between workers in CI and other activities in the Brazilian economy.In addition, the paper shows how much you earn by working in certain regions of Brazil.

THEORETICAL FRAMEWORK
The concepts of Creative Economy, Creative Industry, and Creative City are presented from the theoretical perspective of the main authors on the subject in this section.We will address the main methodologies used to measure CI's activities and the institutions that publish analyses of this market.

The concept of Creative Economy
As Florida (2012) states, the term Creative Economy is based on occupations, that is, occupations that use creativity are part of CE.Howkins (2013) defines CE as including fifteen sectors where there is production of intellectual property in the form of patents, copyrights, trademarks, and proprietary designs.
The concept of CE is not yet well-defined, its boundaries are not yet fully closed, and, therefore, it includes several definitions.However, these definitions still emerge from the same principle.It is a set of economic activities that use creativity as the main input for the production of goods and services.It is understood that CE is based on creative assets, which stimulate the generation of employment and income.Furthermore, it promotes social inclusion, cultural diversity, and human development.It includes creative sectors such as the arts, culture, and historical heritage, activities that work with creativity and generates innovation and competitiveness (FLEMING, 2018;UNCTAD, 2010;REIS, 2008).
CE refers to businesses that use creativity and intellectual capital as their main sources of raw materials, and these raw materials are intangible resources.Traditional industries, on the other hand, work with tangible resources, which become scarce (HARTLEY, 2005apud GZVITAUSKI, 2021, p.03).
For Hartley (2005), Howkins (2013), and Florida (2012), creativity is the ability to generate something new.It can be something that does not exist and takes shape, as well as something reinvented, which already exists and takes on a new meaning.The human being is creative when he writes a text, even if it is not published, or when he invents something, even if it does not exist or cannot be used.Creativity exists both in action and in thought.All people are creative in their way, but some go further and use their creativity for commercial and profitable purposes (HOWKINS, 2013;EAGLEMAN;BRANDT, 2020;CATMULL, 2014).Reis (2008) recognizes CE as one of the most dynamic sectors of the economy and has a strong tendency to expand over the years.It is a fact that creativity has accompanied human evolution since the most remote times, but it was only at the end of the 20th century that it came to be considered a powerful instrument in generating economic value and guaranteeing the competitiveness of products and services.Linked to creativity is culture, creativity as the main input, together with the local culture of a given country, generates a unique and competitive product in the market.
Since the term became known and studied, it has become a strong candidate as a contributor to local development, be it Sustainable or Economic Development.Sustainable because the industry in this economy uses an intangible resource, which is intellectual capital, and therefore it is not scarce and does not degrade the environment.Economic because in Creative Economy activities, specialized labor is a predominant feature.
Howkins (2013) points out that almost half of the people in the creative economy have a higher education, in contrast to about a quarter of the total active population.People are twice as likely to be self-employed.In Brazil, the Federation of Industries of the State of Rio de Janeiro -FIRJAN (2022), based on the Mapping of Creative Industries in Brazil, confirmed that creative professionals have a high level of qualification from 2012 to 2020, which impacts their salary.A similar result was found by Oliveira, Araújo and Silva (2013), who show that CE workers are more educated.CE's raw material is human talent.CE creates products, takes new and original ideas, and turns them into economic capital and marketable products.In this economy, production resources are less important, the importance lies in intangible resources such as intellectual property and ideas.There is a greater impulse in this economy through education to the detriment of technology, as investment in the former increases the effectiveness and value of creativity (HOWKINS, 2013).
That said, it is worth noting that two countries were pioneers in terms of studies on CE and how it could be relevant to the national economy: Australia and the United Kingdom.These countries invested in and funded research on the subject, produced various materials, and implemented policies aimed at the sector.In Buenos Aires, Argentina, the creative sector was responsible for 9% of the country's product and about 9.5% of jobs generated, resulting in a value of US$ 4.3 billion between the years 2003 to 2007 (DALLA COSTA; SOUZA-SANTOS, 2011).It is possible to observe that CE has become quite important in the growth of countries.We can expect that the importance of CE for the economy has grown a lot since the 2000s.
Although CE has been adopted in several countries as an alternative to achieving growth and competitiveness in their economies, it is worth noting that there is no manual to be followed to achieve a satisfactory growth result.The United Kingdom presented the first concept of what the creative industry would be and is an example to be followed as an experiment that worked.But the steps taken by the country should not be replicated precisely, as each country has its particularities, culture, industrial sectors, and form of growth.Therefore, it is plausible that the CE concept is not fully closed and still has much to be explored (REIS, 2008).CE, through CI, contributes significantly to job creation, and especially highly skilled jobs (NYKO; ZENDRON, 2018).The level of qualification, compared to other economic and non-creative sectors, is much higher.According to Nyko and Zendron (2018), these characteristics are presented as vectors for development, generating innovations and new business models that spread to other economic sectors.

Understanding the Creative Industry
CI is an activity defined by using intellectual capital to perform services and create products for commercialization.It can also be related to the economy of ideas, as they transform and improve technologies and generate better products or services (FERREIRA FILHO;LIMA;LINS, 2019).According to UNCTAD (2010), CI is a set of knowledge-based activities, focused on the arts, that generate income and intellectual property rights and is positioned at the crossroads between artistic, service, and industrial sectors.
CIs have non-polluting production models, as they work with intangible resources.They are allied to technological innovation, after all, they work with creativity.And they have strong local development power because, together with creativity and innovation, they can develop services and products that strengthen the local cultural identity and generate sales revenue.
According to Hartley (2005), the term found room among public policies and educational institutions where creativity captured the attention of national policymakers and researchers who sought to promote the growth of jobs and national wealth.CI companies gained market space through technology companies and telecommunications companies.Information technology was migrating from organizations to homes, cars, and people's pockets.
In the United States (USA) in 2001, CI corresponded to 7.75% of GDP, 5.9% of national employment, and US$ 88.97 billion in exports.In London, CIs competed for the position of the main economic sector in the country, with thousands of jobs generated both within the CI itself and in non-creative companies that used creative occupations (HARTLEY, 2005).This industry is characterized by a way of working with a high degree of autonomy, a looser division of labor in terms of the production process, and the existence of a range of creative professionals who can be hired through contracts or projects.Hartley (2005) shows that there is a lot of pressure on CI, as creativity is in a permanent crisis and producers are constantly looking for new forms and talents.But Florida (2012) addresses the fact that economic growth has occurred mainly in places where there is tolerance, diversity, and creativity because these places are chosen by creative people to live.
Creativity has been shown to be a decisive source of competitive advantage in the economy, covering practically all sectors, from fashion to food.The core of the Creative Class is made up of those professionals in science and engineering, architecture and design, education, arts, music, and entertainment who play the economic role of creating new ideas, technologies, and creative content.Around this nucleus, the creative class comprises a broader group of creative professionals in business and finance, law, health, and related areas whose final product will not be something creative but who use creativity to solve complex problems.These professionals have high levels of education or human capital.
The difference between the Creative Class and members of the Working Class and Service Class is that professionals in the Service Class are paid primarily to do routine, physical work, while those in the Creative Class are paid to use their minds, i.e., the market demands the knowledge and creativity of these professionals (FLORIDA, 2012).
Compared to the Service Class, the Creative Class is smaller but more influential and stands out in terms of income and wealth, with professionals in this new class earning on average almost twice as much as professionals in the other two classes.It is even possible that this new economic system based on creativity, in some respects, if not controlled and without adequate forms of human intervention, could deepen unresolved problems (FLORIDA, 2012).

The sectors that make up the Creative Industry
In the international literature, there are several different methodologies for classifying CIs developed over the last few years, aiming to provide an understanding of the characteristics of these industries.Some of these methodologies are: the Concentric Circles Model (THROSBY, 2001); the British CI Model (DCMS, 2016); the Model United Nations Conference on Trade and Development (UNCTAD); and the classification presented by Howkins in 2002 (ARAÚJO; OLIVEIRA; SILVA, 2013; UNCTAD, 2010).The last three models are presented in Table 1, considering their importance for the theory.
The UK was the first to introduce a CI classification model through the Department for Culture, Media, and Sport (DCMS) in the late 1990s.Initially, the CI classification model identified 13 sectors.Currently, after reformulations in the model, it has only nine sectors.Howkins (2002) added to the initial British method a business vision based on marketing concepts of intellectual property (FIRJAN, 2012), which is why it is a pertinent methodology.
UNCTAD published a report in 2010 in which it presented concepts about CI and CE and classified the sectors into 4 groups and 9 subgroups.Since Heritage, Arts, Media, and Functional Creations make up the 4 groups, the subgroups are presented according to Table 1 (UNCTAD, 2010).It was the first research with an international scope and remains relevant in CI and CE studies at the international level.In addition, the methodology is based on the methodologies of DCMS (1998), Howkins (2002), andFlorida (2001).Brazil follows the international literature regarding the different classifications of CI segments.CE has been discussed, studied, and evaluated in public and private institutional spheres, adapting existing methodologies to the local reality (Table 2).FIRJAN has been presenting the Mapping of the Creative Industry in Brazil every two years with updated statistical data, description, and interpretation of these data since 2018.The model developed is aligned with the vision of the Productive Chain of the UNCTAD model ( 2010  Considering the models presented, we noticed that there is no consensus regarding the activities that should be incorporated into a model.Therefore, it is not possible to present a correct or incorrect model, they all start from the same premise and present different ways of interpreting the characteristics of creative production (ARAÚJO; OLIVEIRA; SILVA, 2013).And, again, the issue arises of the non-universalization of a classification model and the unfeasibility of effective comparison between the models.However, for analysis purposes, the model adopted for our research is the one elaborated by UNCTAD (Table 1).

Creative Cities and the concentration of the creative industry
CI relies on Education and Research and Development.Intellectual capital is required at a much higher rate compared to other industries.And in cities that concentrate students and educators, there is a certain freedom to try the new, and these people are both consumers and workers that make up the industry (HARTLEY, 2005).
To Florida (2012), creativity flourishes in social environments where there is stability for the creative class to act, which has diversity and is conducive to expanding creativity in all its forms.That is places or cities that are intellectually receptive, ethnically diverse, and politically open.As an example, it is presented that Japanese cities experienced peaks of creativity in moments receptive to foreign influxes.In addition to highlighting that technical progress is very sensitive to the social environment when technological creativity becomes hostile, it tends to decline.

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A city can be considered creative if innovation, connections, and culture prevail.For Kageyama (2011), the Creative City is a feeling of movement, something is or will happen.It is the city that offers comfort, safety, and functionality, it is interesting, and these characteristics are critical ingredients for having a great city.
Melbourne, Australia, appears on most lists of cities that meet these requirements.Pardo (2011) states that attractive cities are engines of economic growth and social revitalization.Thus, the Creative City focused on innovation and culture, as these elements contribute to the attractiveness of the city.And one of the positive externalities is the attraction for tourism (REIS; KAGEYAMA, 2011).
Creative Cities have attractiveness for foreign investment, concentrations of creative jobs, and a solid social structure.They use their creative potential to offer cultural experiences to inhabitants and visitors, and these experiences are presented by cultural heritage assets or cultural activities related to performing or visual arts, some using festivals and others in the cultural and media industries (UNCTAD, 2010).
Empirical studies indicate that institutional security, job opportunities, and quality of life attract creative individuals to cities and contribute to local development.Florida (2012) argues that quality of life is not just a product of economic development, it can also be a stimulus.In this way, cities that offer good structures tend to achieve the growth and development of their regions.On the other hand, places that stifle creativity and do not offer security and cultural richness are unattractive places for the installation of companies, residences, and tourism (FLORIDA, 2013;REIS, 2011;DIAS;LIMA, 2021).
Companies and cities that challenge and encourage creativity, and especially places with flexible labor market aspects and educational opportunities, are destinations that CI workers tend to seek out and migrate to.Cities like San Jose (Silicon Valley), Washington (DC), Boston, and smaller college towns like Durham, North Carolina, and New York tend to concentrate workers from the Creative Class.The attractive factors of these cities are prosperity and the new model of economic development configured through the 3T -Technology, Talent, and Tolerance (FLORIDA, 2012).
In 2001, the United Nations Educational, Scientific, and Cultural Organization (UNESCO) elected some cities as Creative Cities.Among them is Lima, Peru, which, through its culinary tradition, has managed to promote economic growth and offer more jobs and opportunities for marginalized social groups.As well as Seoul, Republic of Korea, where the government has invested in cultural capital and creative projects to promote socio-economic growth, bringing benefits in urban regeneration and job creation.
Studies such as those by Dias e Lima (2021), Araújo, Oliveira e Silva (2013), and FIRJAN (2012FIRJAN ( -2022) ) show that in Brazil there are concentrations of workers in the economy and creative industries in the Center-South region.The preference of creative workers for cities in this region shows that the environment offered by them is conducive and attractive for the expression of creativity.UNESCO (2023) created the Creative Cities Network in 2004, and since then, almost 300 cities from different parts of the world are currently part of the institution's project.The selected cities stand out for identifying and investing in Página | 12 creativity to promote urban and sustainable development.Brazil currently has 12 cities recognized by UNESCO as creative: Florianópolis (SC), Paraty (RJ), Belo Horizonte (MG), Belém (PA), Salvador (BA), Recife (PE), Brasília (DF), Fortaleza (CE), Curitiba (PR), João Pessoa (PB), Campina Grande (PB), and Santos (SP).

METHODOLOGY
This section describes the method used to quantify the wage earnings of workers in the creative industry in Brazil and Brazilian regions.For this, we will use the Mincerian wage determination model and the UNCTAD creative industries classification model together with the addition of diversified services and correlated activities adopted by Dias and Lima (2021).

The Mincerian model
The functional form of the econometric regression adopted in this study is based on the empirical model proposed by Mincer (1974).This model estimates an equation whose dependent variable is the natural logarithm of salaries divided by hours worked, and the explanatory variables are composed of years of schooling and years of experience of workers.
The empirical model was used to calculate the CI returns in the Mincerian return equation.From this estimation, it is possible to find out how many years of schooling and experience can impact workers' earnings (CUNHA, 2018).
The Mincerian equation is typically written as the following: where (  ) represents the logarithm of the hourly wage received by workers,   is a vector of coefficients,   is a matrix of explanatory variables that, in the initial Mincerian model, are attributed to schooling and experience, and   is a vector of errors.When presented with the defined parameters, the equation has the following form: Over the years, the Mincerian wage equation was adapted by researchers who included gender, race, region, and many other discrimination variables.The Mincerian equation has been widely used to explain how advantageous human capital is for the growth and economic development of a country (CANGUSSU; NAKABASHI; SALVATO, 2010; BARROS; NAKABASHI; RIBEIRO, 2022; CUNHA, 2018; OLIVEIRA; PEREIRA, 2017; CAMPANTE; CRESPO; LEITE, 2004).

Database
The variables used to estimate the wage of the Creative Industry were collected from the Continuous National Household Sample Survey (PNAD-C) 1 for the year 2022.These data are provided by the National Institute of Geography and Statistics (IBGE).Mincerian model will be adapted and expanded to include variables consistent with the Creative Industry in Brazil.For this, we use the classification of Creative Industry segments presented by UNCTAD, identify the activities performed by workers in this industry in Brazil, and add to the model the diversified and correlated services that are intensive in technology and have creativity as an input, according to Dias and Lima (2021).
Therefore, the model includes the traditional variables of the Mincerian equation, and the variables related to CI are added.This is necessary for us to carry out a more complete analysis of the wage from the traditional industry, compare these wages with those of the creative industry, and identify the Brazilian region with the best wages.
In addition, IBGE's National Classification of Economic Activities (CNAE 2.0) was used to align business activities with those defined by UNCTAD as being activities carried out by the Creative Industry, according to Table 1 and Appendix A. Thus, the research assumes a dimension sectorial, that is, unlike the occupational dimension that consists of the worker's professional occupation, the sectoral dimension concerns the branch of business activities (DIAS; LIMA, 2021; ARAÚJO; OLIVEIRA; SILVA, 2013).
Table 3 presents the variables that make up the regression to be estimated, in which the dependent variable is the natural logarithm of the monthly salary from the main job divided by the hours worked (salary/hour).Among the independent variables, nine are called binary variables (or dummies), of which six specifically characterize the creative industry and the others characterize individuals in the economy in general.
We consider informal workers as those people with: employment without a formal contract; domestic workers without a formal contract; self-employed; workers in production for their consumption; construction workers for their use; and unpaid. 1 The PNAD-C was chosen because it has a large amount of more recent data on the main characteristics of the labor market broken down by federative units, formal and informal markets, as well as other characteristics of the workforce such as age, sex, and level of education, among others, that are necessary for this study.The survey is collected quarterly in the households that make up the sample, ensuring the representativeness of the results for the different Brazilian geographic levels.Mincer equation was considered, in which the individual starts working after completing his studies.In this sense, the age variable was only used to calculate experience and was not included in the regression model to avoid multicollinearity.
In addition, only individuals aged between 16 and 65 were included.The starting age chosen refers to the minimum age for entering the Brazilian labor market (except in the case of young apprentices, who can start at 14 years old).The North region of Brazil was used as the reference region of this study and, therefore, will be the intercept of the equation to be estimated.where, the natural logarithm of the monthly salary is divided by the hours worked (salary/hour),  1 is the constant and the referential coefficient of the binary variables,  2 makes up the parameter of the dummy variable of sex,  3 represents the impact of race,  4 corresponds to the years studied,  5 represents the informality of the work,  6 represents the years of experience,  7 is the parameter referring to the squared experience,  8 are whether they are inserted in the CI or not,  9 ,  10 ,  11 , and  12 , represent the regions of the country compared to the income of the North region, the region of comparison,  13 corresponds to individuals who work in the CI with a formal contract compared to those who do not work in the CI and are informal.

The estimated regression based on the
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RESULTS AND DISCUSSION
4.1 Analysis of the descriptive statistics of the variables Table 4 presents the descriptive statistics of the research sample.This sample is composed of 183,179 people from all Brazilian states, and the average values, standard deviation, minimum, and maximum values reached for the variables used are presented.On average, a Brazilian worker's wage is R$ 13.95 per hour worked.The maximum salary received is R$ 2325.58 per hour worked.About 58% of workers are men, and 41% are white.The median age is 39, and people have 22.84 years of work experience on average.About 14.62% of workers work in the Creative Industry.This result shows how small the number of workers in the Creative Industry in Brazil is when compared to the number of workers in general.However, according to FIRJAN, in 2020, the creative job market grew by 1.8% compared to 2019.CI workers are distributed in the five Brazilian regions, where 1.45% are in the North region, 3.30% are in the Northeast, 5.10% are in the Southeast, 2.91% are in the South region, and 1.83% are in the Midwest region.We observed that CI workers are more concentrated in the Southeast region of the country, where better opportunities are offered.In addition, there is greater diversity and tolerance where there is a concentration of students and teachers with the best educational backgrounds (HARTLEY, 2005;FLORIDA, 2013).
On average, 47% of workers have formal employment and comply with Brazilian labor laws, the other 52% work without formal registration.Of the CI workers, 9.35% have a formal work record and 5.26% work without a formal work record.
As for years of study, Table 4 shows that workers in general have an average of 10.65 years of schooling.However, in Table 5, we see that the average education of people working in the creative industry is 13.69 years, and 10.12 years for those not in the creative industry.Then workers who are in CI study, on average, 3 years more than those who do not work in the creative industry in Brazil.We found that people who work in the creative industry in Brazil tend to earn, on average, 72% more than people who don't work in the creative industry.Florida (2013) highlighted that CI workers earn on average almost twice as much as other professionals, and the results found in this work converge with those found by the aforementioned author.
We can also note that people working in the creative industry who do not have a formal employment record earn, on average, more than people who maintain a formal employment record in the creative industry.Furthermore, we noticed that the highest average salaries in the creative industry are being paid in the South and Southeast regions of Brazil, and, along with this, people working in the creative industry in these regions also have the highest averages of schooling.Meanwhile, the Northeast region of Brazil has the lowest average hourly wages in the creative industry (R$ 18.36) and the lowest average education level (13.17 years).
In conclusion, the South and Southeast regions of Brazil offer the best job opportunities, greater flexibility in the labor market, diversity, and a favorable environment for these professionals to establish themselves and carry out their respective professions.The result found corroborates the statements by Hartley (2005) and Florida (2013) that there is a concentration of creative workers in certain regions.According to FIRJAN (2022), the states in the South and Southeast regions, for example, have a greater population and wealth compared to the states in the North region of Brazil.

Mincerian wage income model
Mincerian empirical model, with the data organized in cross-section and the dependent variable being the natural logarithm of the monthly earnings divided by the hours worked.
We performed the Variance Inflation Factor (VIF) test to verify the presence of multicollinearity and the White test for the presence of heteroscedasticity.The test results did not indicate the presence of significant multicollinearity, however, there are indications of heteroscedasticity in the model.With that, we estimate the parameters with robust standard errors to correct heteroscedasticity.
The model is statistically significant with 99% confidence.The variables are presented, individually and jointly, as statistically significant with 99% confidence.The model has a goodness of fit (adjusted R2 ) of 32.25%.
Considering Table 6, keeping all variables constant, men have a median wage per hour worked 21.64% more than women2.White people earn median wages per hour worked about 21% more than non-white people, ceteris paribus.For every additional year of study, there will be an increase of 9.14%, on average, in the hourly wage.For every more year of experience, the hourly wage tends to increase by 2.54% on average, keeping all other variables constant.Crespo and Reis (2006) found an even greater impact on earnings when analyzing the diploma effect in Brazil.According to the result obtained by the authors, with each additional year of study, the worker's income tends to increase by 12%.The authors conclude that not only do more years of schooling generate an increase in earnings, but also that completing a complete degree of study has a significant impact on earnings.
There may are more individuals working in the Research and Development and Information Technology sectors in the North region when compared to the Northeast region.Therefore, there is this difference in the result of median wages in the North and Northeast regions.Another factor that may contribute to this result is the richness of the North's biodiversity and the strong presence of researchers and scientists studying the region for the development of new products.
Meanwhile, individuals working in CI in the South, Midwest, and Southeast regions of the country have a median hourly wage of 15%, 12.17%, and 11.76%, respectively, higher than that of workers in the North region.We estimate that the median hourly wages of workers in the South, Midwest, and Southeast regions are, respectively, R$ 2.53, R$ 2.46, and R$ 2.45.While median hourly wages for workers in the North region are R$ 2.20.
To Dias and Lima (2021), some cities the South and Southeast regions, including the capitals, represent "the great national creative hub", and it is the most dynamic group among those presented in the study.These regions can promote creativity and local growth as they have attractions such as institutional strength and large cities.Therefore, it is convenient for non-creative companies and, above all, creative companies to concentrate in these regions.
There is a convergence with the results obtained by FIRJAN in the period from 2014 to 2020, and the median yields of CI are higher in the South, Midwest, and Southeast regions, according to our research.This is because, according to the Mapping of the Creative Industry in Brazil ( 2022), Brazilian states such as São Paulo, Rio de Janeiro, Minas Gerais, Santa Catarina, Paraná, and the Federal District often have higher average wages than states in the North region.
Regarding the informality of work in CI, workers without a work record who are linked to the creative industry tend to have a median hourly wage 36.92%higher than other workers.This is a surprising result, even though we have already seen in Table 5 that the average wage of informal workers in the creative industry is higher.
According to Howkins (2013), people who work in sectors called the Creative Industry have a strong tendency to be self-employed.Hartley (2005) points out that workers in the creative industry are usually hired through contracts or projects, have a less rigid production process, and are always looking for new individuals, after all, creativity is the main factor that drives this industry.This is also a factor addressed by the Mapping of FIRJAN between the years 2014 to 2020 and by Getúlio Vargas Foundation (FGV) in 2020, however, the values are not measured.These studies only inform us that there are CI sectors that have a smaller number of individuals with formal employment ties, or where there are a greater number of companies than the number of contracted workers.Workers in the Performing Arts segment who work in dance, music, and theater activities are more likely to be self-employed (FIRJAN 2014(FIRJAN -2020;;UNCTAD, 2010).Oliveira, Araújo and Silva (2013), using data from RAIS and PNAD for the period 2006 -2009, also show that in the creative economy there is a large presence of informality.In addition, Oliveira, Araújo and Silva (2013) conclude that there is a higher turnover among workers in the Creative Economy, they stay less time on the job, and the search for higher wages can be a determining factor.

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With all this, we can conclude that CI workers are the ones who have the highest salary per hour of work, especially if this is a workers without a formal employment record.In contrast, the lowest wages are paid to informal workers who are not part of the CI.The Brazilian regions with the highest hourly wages for CI are the South and Southeast regions, while the lowest earnings are in the Northeast and North regions of Brazil.

FINAL CONSIDERATIONS
In the last two decades, the Creative Economy has gained ground among public policymakers, United Nations (UN) agencies, and researchers in general due to the social and economic effects it provides.Some of these effects increase the competitive advantage of companies and countries by offering products and services with high added value, having intellectual capital and creativity as their main inputs, and needing a workforce with high degrees of specialization, which contributes to the reduction of inequality and social inclusion and promotes the offer of better wages.
Based on the research conducted by Dias and Lima (2021), the article shows the theoretical aspects related to the trend of productive agglomerations of the Creative Industries in the center-southern axis of Brazil as well as the tendency of concentration of these industries in urban environments.Unlike the study by Dias and Lima (2021), we calculated the wage income of CI workers, understanding the particularities of CI compared to other economic activities.
Analyzing the estimated results, there is a convergence between them and the theories presented throughout the study.CI offers better wages compared to noncreative industries.And the salary tends to be even higher if the worker does not have an employment contract (informal work).This result explains why only 9% have formal employment contracts of the 15% of workers in the Creative Industry.With this result, another hypothesis is empirically proven: CI workers tend to work self-employed or on projects.From a regional perspective, although the Brazilian Northeast region of the country is the second-largest region with individuals working in CI, it offers a median hourly wage 14.28% lower than the North region, which has the lowest number of workers in the Creative Industry.However, the main explanation is that the environment provided by the region is attractive to CI workers, just like an environment in a Creative City, contrary to what should happen in the northern region.
The Southeast region of Brazil concentrates the largest number of CI workers (5%), and they receive a median hourly wage 11.76% higher than workers in the North region of the country.This result confirms the concept applied to Creative Cities.Where there is a concentration of CI individuals, it is because these places offer safe environments for the propagation of ideas and creations.Also, there are more employment opportunities there compared to other places.In the case of Brazil, there is more demand for these workers in the South and Southeast regions of the country.
Finally, richer regions with more dynamic economies attract more skilled labor and concentrate more resources on the creative economy.This generates a cycle of disparity between regions, as more skilled labor generates higher incomes for Página | 21 these people.With this, we suggest that other studies be carried out to create effective public policies to attract qualified labor and the cultural and artistic identity of CI to less dynamic regions, such as the North and Northeast regions of Brazil.
) and has 13 segments.Another model based on the methodology developed by UNCTAD was presented by the Institute of Applied Economic Research (IPEA) and titled Panorama of the Creative Economy in 2013, which classified the Industries into 17 segments.The Itaú Cultural Observatory presented a bulletin with a new classification for CIs in 2021, based on the British Model of creative intensity, made a comparison of the CI sector in Brazil with that of the United Kingdom, and has a classification with 11 sectors.

Table 3 -
Description of variables in the expanded Mincerian wage equation Dependent variable Description ln Salary/hour Natural log of primary job salary divided by hours worked Independent employed in activities corresponding to CI Creative Industry -Nd Dummy of Creative Industry workers residing in the Northeast region = 1 and Other = 0 Creative Industry -SD Dummy of Creative Industry workers residing in the Southeast region = 1 and Other = 0 Creative Industry -S Dummy of Creative Industry workers residing in the South region = 1 and Other = 0 Creative Industry -CO Dummy of Creative Industry workers residing in the Midwest region = 1 and Other = 0 Creative Industry and informal work Dummy of the interaction of Creative Industry workers with informal work in which informal CI workers = 1 and formal = 0

Table 1 -
Different Classifications of the Creative Industry in the World

Table 2 -
Different classifications of the Creative Industry in Brazil Mincerian wage equation is presented as follows:

Table 4 -
Descriptive statistics of the variables

Table 5 -
Averages of Salary/hour and Education about Creative and in the Creative Industry

Table 6 -
Result of the Mincerian data model in cross-section