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Race Discrimination in Brazil: An Analysis of the Age, Period and Cohort Effects

  • Anna Risi Vianna Crespo
  • Maurício Cortez Reis

Earnings differential between white and black workers present a decreasing trend foryounger cohorts in Brazil. We argue in this paper that the reduction in economicdiscrimination for younger cohorts could have played an important role on thisresult. Using the Brazilian National Household Sample Survey data [PesquisaNacional por Amostra de Domicílios (PNAD)] from 1987 to 2002, the earningsdifferential by race is decomposed into two parts through the Oaxaca-Blindermethodology: the first one is the characteristic effect and the second is thediscrimination term. This decomposition is made for 90 cells defined by cohort andyear. After that, the amount of earnings differential due to discrimination term isdecomposed into age, period and cohort effects. According to the evidences, thecohort effects are smaller for younger generations, and the age effects present adecreasing trend for older workers. The results show also that periods with highinflation are associated with weaker contribution of discrimination term to earnings differential.

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Paper provided by Instituto de Pesquisa Econômica Aplicada - IPEA in its series Discussion Papers with number 1114.

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Length: 30 pages
Date of creation: Aug 2005
Date of revision:
Handle: RePEc:ipe:ipetds:1114
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  1. Joseph G. Altonji & Charles R. Pierret, . "Employer Learning and Statistical Discrimination," IPR working papers 97-18, Institute for Policy Resarch at Northwestern University.
  2. Farber, Henry S & Gibbons, Robert, 1996. "Learning and Wage Dynamics," The Quarterly Journal of Economics, MIT Press, vol. 111(4), pages 1007-47, November.
  3. 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.
  4. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-61, September.
  5. Lundberg, S.J.Startz, R., 1994. "On the Persistence of Racial Inequality," Discussion Papers in Economics at the University of Washington 94-07, Department of Economics at the University of Washington.
  6. Campante, Filipe R. & Crespo, Anna R. V. & Leite, Phillippe G. P. G., 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), April.
  7. Maurício Cortez Reis & José Márcio Camargo, 2005. "Desemprego dos Jovens no Brasil: Os efeitos da Estabilização da Inflação em um Mercado de Trabalho com Escassez de Informação," Discussion Papers 1116, Instituto de Pesquisa Econômica Aplicada - IPEA.
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