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Is There Racial Wage Discrimination in Brazil? A new sample with proxies for family background and ability

  • Alexandre Rands

    ()

    (Datamétrica Consultoria, Pesquisa e Telemarketing)

  • Juliana Ferraz Guimaraes
  • Tiago V. de Vasconcelos Cavalcanti

This paper attempts to provide new empirical evidences on racial wage discrimination in the Brazilian labor market. For this purpose, we use a new sample from a direct survey, conducted by the authors, in which we have enough information to estimate wage functions by controlling for usually unobserved variables as family background. The results, from Oxaca’s decomposition, suggests that, once we controlled for those unobserved variables, it is possible to reduce substantially the role of racial labor market discrimination in Brazil. We claim that there is no conclusive support to such discrimination and the labor income gap between blacks and whites is explained by pre-market factors, such as school quality and family background, instead of discriminatory behavior in the labor market. There results favor policies completely different from those which should be implemented to prevent the adverse side effects of racial discrimination.

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Paper provided by Datamétrica Consultoria Econômica in its series Working Papers with number 10.

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Length: 18 pages
Date of creation: 2000
Date of revision: 2000
Publication status: Published in Global Business And Economic Review Anthology, 2000, p. 61-77.
Handle: RePEc:dtm:wpaper:10
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