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

Abstract

Purpose: This paper analyzes the issue of wage differentials and gender discrimination in the Brazilian labor market. Design/methodology/approach: The 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). Findings: The 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/value: This is the first paper detailing wage discrimination across the different Brazilian regions and also controlling for usual dimensions like gender and race. Peer review: The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-09-2021-0569.