Abstract

ABSTRACTThis study investigates the relationship between unequal resource and population distribution and racial wage inequality in Brazil. Using sample data from the 1980 Brazilian census, monthly wages were estimated for white and Afro‐Brazilian men working in nine metropolitan areas. Estimates showed that racial disparities in wages existed across all regional labour markets. Regression‐based decomposition analysis found that a substantial portion of the racial wage gap was due to discrimination (unequal pay), while estimates of the magnitude of labour market discrimination indicated considerable variation by geographical area. Discrimination was higher in the predominantly white and highly developed areas of the South than in the former slave and underdeveloped regions of the Northeast.

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