Shrinking gender wage gaps in the Brazilian labor market: an application of the APC approach

Abstract

Abstract: Labor market literature attests that men tend to earn more than women in similar occupations in Brazil and elsewhere. However, some recent trends that have occurred in Brazil promote the narrowing of gender gaps in the labor market. This paper analyzes this issue empirically with the use of PNADs, Mincerian wage equations, and a hierarchical model based on the Age-Period-Cohort approach. We observed that gender wage gaps were shrinking and, although there might still be an unexplained advantage for men in the labor market, the evolution of women's endowments for the labor market and the decrease in labor market segregation significantly compensated for this difference. Due to these trends, after controlling for cohort differences, we observed non-significant gender wage gaps in some models.