Decomposing wage differences in Brazilian regions: a revised insight about traditional discrimination

Abstract

PurposeThis paper analyzes the issue of wage differentials and gender discrimination in the Brazilian labor market.Design/methodology/approachThe methodology is based on the log-linear equation model by Mincer (1974) and the decomposition method by Oaxaca (1973) and Blinder (1973) and was estimated using data from the National Household Sample Survey (PNAD).FindingsThe main results indicate that there was a reduction in wage differentials and gender discrimination in the majority of regions in Brazil for white workers when comparing the available years. However, for non-white workers, the degree of discrimination increased in Brazil, especially in the central-west and southeast regions. Overall, wage decompositions have suggested that women suffer from wage discrimination.Originality/valueThis is the first paper detailing wage discrimination across the different Brazilian regions and also controlling for usual dimensions like gender and race.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-09-2021-0569.