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

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  • Maurício Cortez Reis
  • Anna Risi Vianna Crespo

Abstract

Earnings differential between white and black workers present a decreasing trend for younger cohorts in Brazil. We argue in this paper that the reduction in economic discrimination for younger cohorts could have played an important role on this result. Using the Brazilian National Household Sample Survey data [Pesquisa Nacional por Amostra de Domicílios (PNAD)] from 1987 to 2002, the earnings differential by race is decomposed into two parts through the Oaxaca-Blinder methodology: the first one is the characteristic effect and the second is the discrimination term. This decomposition is made for 90 cells defined by cohort and year. After that, the amount of earnings differential due to discrimination term is decomposed into age, period and cohort effects. According to the evidences, the cohort effects are smaller for younger generations, and the age effects present a decreasing trend for older workers. The results show also that periods with high inflation are associated with weaker contribution of discrimination term to earnings differential. Os diferenciais de rendimentos entre brancos e negros apresentam uma tendência decrescente para as coortes mais novas no Brasil. Argumentamos neste artigo que a redução na discriminação para as gerações mais recentes pode ter desempenhado um papel importante para esse resultado. Usando dados da Pesquisa Nacional por Amostra de Domicílios (PNAD) de 1987 a 2002, o diferencial de rendimentos entre raças é decomposto em dois termos através da metodologia de Oaxaca-Blinder: o primeiro é o efeito característica e o segundo é o termo de discriminação. Essa decomposição é implementada para 90 células definidas pela coorte de nascimento e o ano da pesquisa. Em seguida, a parcela do diferencial de rendimentos atribuída ao termo de discriminação é decomposta nos efeitos idade, período e coorte. De acordo com os resultados, os efeitos de coorte são menores para as gerações mais novas, e os efeitos da idade apresentam uma tendência de redução para os trabalhadores mais velhos. As evidências mostram, também, que períodos de alta inflação estão associados com uma menor contribuição do termo de discriminação para o diferencial de rendimentos.

Suggested Citation

  • Maurício Cortez Reis & Anna Risi Vianna Crespo, 2015. "Race Discrimination in Brazil: an Analysis of the Age, Period and Cohort Effects," Discussion Papers 0157, Instituto de Pesquisa Econômica Aplicada - IPEA.
    • Handle: RePEc:ipe:ipetds:0157
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    References listed on IDEAS

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    1. Joseph G. Altonji & Charles R. Pierret, 2001. "Employer Learning and Statistical Discrimination," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(1), pages 313-350.
    2. 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, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 61(4), July.
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    5. Henry S. Farber & Robert Gibbons, 1996. "Learning and Wage Dynamics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(4), pages 1007-1047.
    6. 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.
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    9. Altonji, Joseph G. & Blank, Rebecca M., 1999. "Race and gender in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 48, pages 3143-3259, Elsevier.
    10. 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. Salardi, Paola & Ñopo, Hugo R., 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.
    2. Gerard, Francois & Lagos, Lorenzo & Severnini, Edson R. & Card, David, 2018. "Assortative Matching or Exclusionary Hiring? The Impact of Firm Policies on Racial Wage Differences in Brazil," IZA Discussion Papers 11923, Institute of Labor Economics (IZA).

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