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

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  • Anna Risi Vianna Crespo
  • Maurício Cortez Reis

Abstract

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.

Suggested Citation

  • 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.
  • Handle: RePEc:ipe:ipetds:1114
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    References listed on IDEAS

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    1. Reis, Mauricio Cortez & Camargo, José Márcio, 2007. "Desemprego dos jovens no Brasil: os efeitos da estabilização da inflação em um mercado de trabalho com escassez de informação," Revista Brasileira de Economia - RBE, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 61(4), July.
    2. 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.
    3. 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 - RBE, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 58(2), April.
    4. Henry S. Farber & Robert Gibbons, 1996. "Learning and Wage Dynamics," The Quarterly Journal of Economics, Oxford University Press, vol. 111(4), pages 1007-1047.
    5. Lundberg, Shelly & Startz, Richard, 1998. "On the Persistence of Racial Inequality," Journal of Labor Economics, University of Chicago Press, vol. 16(2), pages 292-323, April.
    6. Joseph G. Altonji & Charles R. Pierret, 2001. "Employer Learning and Statistical Discrimination," The Quarterly Journal of Economics, Oxford University Press, vol. 116(1), pages 313-350.
    7. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
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    Cited by:

    1. Luana Marquez Garcia & Paola Salardi & Hugo R. Ñopo, 2009. "Gender and Racial Wage Gaps in Brazil 1996-2006: Evidence Using a Matching Comparisons Approach," IDB Publications (Working Papers) 1649, Inter-American Development Bank.

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