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

Author

Listed:
  • Alexandre Rands

    (Datamétrica Consultoria, Pesquisa e Telemarketing)

  • Juliana Ferraz Guimaraes
  • Tiago V. de Vasconcelos Cavalcanti

Abstract

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.

Suggested Citation

  • Alexandre Rands & Juliana Ferraz Guimaraes & Tiago V. de Vasconcelos Cavalcanti, 2000. "Is There Racial Wage Discrimination in Brazil? A new sample with proxies for family background and ability," Working Papers 10, Datamétrica Consultoria Econômica, revised 2000.
    • Handle: RePEc:dtm:wpaper:10
    as

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    File URL: ftp://repec.datametrica.com.br/RePEc/dtm/wpaper/BARROSAlexandreIsThereRacialWageDiscriminationinBrazilGBER10.pdf
    File Function: Revised version, 2000
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    Citations

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    Cited by:

    1. 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.

    More about this item

    Keywords

    wage discrimination; race and family background.;

    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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