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Gender and Racial Wage Gaps in Brazil 1996-2006: Evidence Using a Matching Comparisons Approach

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  • Luana Marquez Garcia
  • Hugo Nopo

    ()

  • Paola Salardi

Abstract

This paper explores the evolution of Brazilian wage gaps by gender and skin color over a decade (1996-2006), using the matching comparison methodology developed by Ñopo (2008). In Brazil, racial wage gaps are more pronounced than those found along the gender divide, although both noticeably decreased over the course of the last decade. The decomposition results show that differences in observable characteristics play a crucial role in explaining wage gaps. While in the case of racial wage gaps, observable human capital characteristics account for most of the observed wage gaps, the observed gender wage gaps have the opposite sign than what the differences in human capital characteristics would predict. In both cases the role of education is prominent.

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Paper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 4626.

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Date of creation: May 2009
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Handle: RePEc:idb:wpaper:4626

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Keywords: Gender; race; wage gaps; Brazil; matching;

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  1. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  2. G. Reza Arabsheibani & Francisco Galrao Carneiro & Andrew Henley, 2003. "Gender wage differentials in Brazil : trends over a turbulent era," Policy Research Working Paper Series 3148, The World Bank.
  3. Anna Risi Vianna Crespo & Maurício Cortez Reis, 2005. "Race Discrimination in Brazil: An Analysis of the Age, Period and Cohort Effects," Discussion Papers 1114, Instituto de Pesquisa Econômica Aplicada - IPEA.
  4. Philippe G. Leite, 2005. "Race Discrimination or Inequality of Opportunities: The Brazilian Case," Ibero America Institute for Econ. Research (IAI) Discussion Papers 118, Ibero-America Institute for Economic Research.
  5. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
  6. Filipe R. Campante & Anna R. V. Crespo & Phillippe G. P. G. Leite, 2004. "Desigualdade Salarial entre Raças no Mercado de Trabalho Urbano Brasileiro: Aspectos Regionais," Revista Brasileira de Economia, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 58(2), pages 185-210, April.
  7. Jean-Louis Arcand & Béatrice D'hombres, 2004. "Racial discrimination in the Brazilian labour market: wage, employment and segregation effects," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(8), pages 1053-1066.
  8. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  9. Omar Arias & Gustavo Yamada & Luis Tejerina, 2004. "Education, Family Backgrounds and Racial Earnings Inequality in Brazil," Working Papers 04-04, Departamento de Economía, Universidad del Pacífico, revised 2004.
  10. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
  11. Birdsall, Nancy & Fox, M Louise, 1985. "Why Males Earn More: Location and Training of Brazilian Schoolteachers," Economic Development and Cultural Change, University of Chicago Press, vol. 33(3), pages 533-56, April.
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