BRAZILIAN FEMALE LABOR MARKET: RACIAL-SKIN COLOR DISCRIMINATION AND INEFFICIENCY

FERNANDES, GUSTAVO ANDREY DE ALMEIDA LOPES

doi:10.1590/1413-8050/ea85456

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Artigos • Econ. Apl. 19 (2) • Apr-Jun 2015 • https://doi.org/10.1590/1413-8050/ea85456 copy

BRAZILIAN FEMALE LABOR MARKET: RACIAL-SKIN COLOR DISCRIMINATION AND INEFFICIENCY

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract

The myth of racial democracy is still widespread in the Brazilian society, although economic literature has continuously documented pervasive racial discrimination. This study analyzes racial discrimination in the Brazilian female labor market using a Mincer stochastic wage frontier, corrected for sample selection. The results, using Oaxaca-Blinder decomposition, showed that an efficient wage differential, not explained by diferences in human capital does exist and is large among the most eficiente workers. Wage inefficiencies are also explained and it is a claim of the study that traditional policies might be a tool in reducing underpayment dispersion, but cannot cope with pure discrimination.

Keywords:
Racial discrimination; Female Labor Market; Affirmative Action

	Female Labor MarketWhite		Female Labor MarketBlack		Female Labor Market
Variable	Mean	Std. Dev.	Mean	Std. Dev.	Mean	Std. Dev.
Wage⁽¹⁾	514.946	958.755	759.143	1334.816	396.499	637.159
Educ	8.986	4.447	9.783	4.618	7.715	4.540
Educ17⁽²⁾	0.122	0.327	0.207	0.405	0.075	0.263
Exper	21.433	14.631	25.784	13.123	26.248	13.221
SE	0.290	0.454	0.347	0.476	0.245	0.430
N	0.123	0.329	0.066	0.249	0.172	0.378
NE	0.304	0.460	0.188	0.390	0.410	0.492
S	0.173	0.378	0.295	0.456	0.057	0.233
CW	0.110	0.312	0.103	0.304	0.116	0.320
Urban	0.819	0.385	0.124	0.329	0.183	0.387
Maid formal	0.042	0.200	0.038	0.192	0.056	0.231
Maid informal	0.131	0.337	0.091	0.288	0.153	0.360
Formal Labor	0.252	0.434	0.285	0.451	0.193	0.395
Age	36.276	13.333	41.157	11.336	40.584	11.262
Unionized	0.168	0.374	0.209	0.407	0.177	0.382
Children	1.778	1.288	1.622	1.124	1.924	1.410
Indust. Sector	0.125	0.331	0.139	0.345	0.111	0.314
Child < 10⁽³⁾	0.339	0.473	0.350	0.477	0.397	0.489
Dependent - Partner	0.480	0.500	0.576	0.494	0.541	0.498
Dependent - Son	0.226	0.418	0.046	0.209	0.053	0.224
Dependent - Others	0.068	0.252	0.118	0.322	0.117	0.322
	(N=61,183)		(N=30,489)		(N=30,694)

	Black Female Worker		White Female Worker
	Log Wage	Labor Force	Log Wage	Labor Force
Educ	0.087	0.097	0.103	0.078
	(0.002)**	(0.003)**	(0.002)**	(0.003)**
Educ17	0.546		0.475
	(0.025)**		(0.019)**
Age	0.053	0.070	0.056	0.071
	(0.003)**	(0.007)**	(0.004)**	(0.007)**
Age sq	−0.001	−0.001	−0.001	−0.001
	(<0.001)**	(<0.001)**	(<0.001)**	(<0.001)**
N	−0.032	−0.313	−0.044	−0.265
	(0.017)	(0.037)**	(0.023)	(0.051)**
NE	−0.371	−0.195	−0.313	−0.256
	(0.014)**	(0.031)**	(0.016)**	(0.036)**
S	0.054	−0.159	0.049	−0.311
	(0.024)*	(0.053)**	(0.014)**	(0.032)**
CW	0.107	0.032	0.087	−0.096
	(0.018)**	−0.045	(0.019)**	(0.047)*
Married		−0.324		−0.23
		(0.056)**		(0.065)**
Number Children at Home		−0.037		−0.043
		(0.011)**		(0.014)**
Child < 10		−0.028		−0.063
		(0.031)		(0.034)
Urban		1.248		1.299
		(0.024)**		(0.028)**
Ind. Sector		0.772		0.922
		(0.047)**		(0.049)**
Dependent - Partner		−0.704		−0.729
		(0.053)**		(0.062)**
Dependent - Son		−0.426		−0.414
		(0.067)**		(0.082)**
Dependent - Others		−0.165		−0.394
		(0.078)*		(0.083)**
Constant	3.889	−0.722	3.798	−0.591
	(0.078)**	(0.169)**	(0.081)**	(0.184)**
Observations	25545	25545	24432	24432
	LR test of indep. eqns. (rho = 0):LR test of indep. eqns. (rho = 0):
	chi2(1) = 123.85		chi2(1) = 53.94
	Prob > chi2 = 0.0000		Prob > chi2 = 0.0000

	Black Female Worker Log Wage		White Female Worker Log Wage
	SE	Bootstrapping	SE	Bootstrapping
Educ	0.063	0.063	0.092	0.092
	(0.002)**	(0.002)**	(0.002)**	(0.002)**
Educ17	0.579	0.579	0.467	0.467
	(0.020)**	(0.025)**	(0.017)**	(0.018)**
Age	0.034	0.034	0.040	0.040
	(0.004)**	(0.004)**	(0.004)**	(0.005)**
Age sq	−0.001	−0.001	−0.001	−0.001
	(<0.001)**	(<0.001)**	(<0.001)**	(<0.001)**
N	0.018	0.018	−0.029	−0.029
	(0.014)	(0.014)	(0.021)	(0.020)
NE	−0.237	−0.237	−0.267	−0.267
	(0.011)**	(0.011)**	(0.015)**	(0.016)**
S	0.006	0.006	0.015	0.015
	(0.019)	(0.019)	(0.012)	(0.013)
CW	0.116	0.116	0.111	0.111
	(0.015)**	(0.015)**	(0.017)**	(0.017)**
Union	0.245	0.245	0.183	0.183
	(0.015)**	(0.016)**	(0.015)**	(0.016)**
Urban	0.066	0.066	0.076	0.076
	(0.020)**	(0.019)**	(0.026)**	(0.023)**
Constant	4.670	4.670	4.362	4.362
	(0.085)**	(0.084)**	(0.095)**	(0.102)**
Observations	20700		20643

	Black Female Worker Log Wage			White Female Worker Log Wage
	SE	Corrected SE	Bootstrapping	SE	Corrected SE	Bootstrapping
Educ	0.059	0.059	0.059	0.090	0.090	0.090
	(0.002)**	(<0.001)**	(0.002)**	(0.002)**	(<0.001)**	(0.002)**
Educ17	0.589	0.589	0.589	0.472	0.472	0.472
	(0.020)**	(<0.001)**	(0.023)**	(0.017)**	(<0.001)**	(0.019)**
Age	0.031	0.031	0.031	0.037	0.037	0.037
	(0.004)**	(<0.001)**	(0.004)**	(0.004)**	(<0.001)**	(0.005)**
Age sq	< 0.001	< 0.001	< 0.001	< 0.001	< 0.001	< 0.001
	(<0.001)**	(<0.001)**	(<0.001)**	(<0.001)**	(<0.001)**	(<0.001)**
N	0.028	0.028	0.028	−0.024	−0.024	−0.024
	(0.014)*	(<0.001)**	(0.015)	(0.021)	(<0.001)**	(0.020)
NE	−0.231	−0.231	−0.231	−0.262	−0.262	−0.262
	(0.012)**	(<0.001)**	(0.012)**	(0.015)**	(<0.001)**	(0.015)**
S	0.011	0.011	0.011	0.022	0.022	0.022
	(0.019)	(<0.001)**	(0.017)	(0.013)	(<0.001)**	(0.012)
CW	0.115	0.115	0.115	0.112	0.112	0.112
	(0.015)**	(<0.001)**	(0.015)**	(0.017)**	(<0.001)**	(0.017)**
Union	0.244	0.244	0.244	0.182	0.182	0.182
	(0.015)**	(<0.001)**	(0.016)**	(0.015)**	(<0.001)**	(0.016)**
Urban	−0.025	−0.025	−0.025	0.010	0.010	0.010
	(0.028)	(<0.001)**	(0.028)	(0.036)	(<0.001)**	(0.033)
Blackmillsratio	−0.171	−0.171	−0.171	-I	−	−
	(0.036)**	(<0.001)**	(0.034)**		−	−
Whitemillsratio	-	-	-	−0.120	−0.120	−0.120
				(0.044)**	(<0.001)**	(0.042)**
Constant	4.862	4.862	4.862	4.500	4.500	4.500
	(0.093)**	(0.001)**	(0.090)**	(0.108)**	(0.001)**	(0.117)**
Observations		20700			20643

	Black Female Worker Inefficiency	White Female Worker Inefficiency
Educ	− 0.202	− 0.001
	(0.025)**	(0.023)
Child < 10	0.434	0.382
	(0.135)**	(0.203)
Urban	− 1.004	− 2.001
	(0.165)**	(0.382)**
Maid Formal	−22.476	−12.193
	(4.511)**	(3.579)**
Maid Informal	0.299	2.336
	(0.127)*	(0.441)**
Formal Labor	−17.183	−11.429
	(2.726)**	(2.700)**
Age	− 0.057	0.018
	(0.030)	(0.042)
Age sq	0.001	0.001
	(0.001)**	(0.001)
Union	0.802	− 0.725
	(0.167)**	(0.301)*
Children	0.057	0.132
	(0.046)	(0.080)
Ind. Sector	2.429	3.117
	(0.257)**	(0.578)**
Constant	− 0.972	− 5.771
	(0.840)	(1.802)**
Observations	20700	20643

Efficient Wage Quantile	Pure Discrimination (%)
0.01	0.196
0.05	0.158
0.10	0.143
0.20	0.137
0.30	0.143
0.40	0.153
0.50	0.155
0.60	0.153
0.70	0.151
0.80	0.150
0.90	0.148

Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto da Universidade de São Paulo Avenida dos Bandeirantes, 3.900, CEP 14040-900 Ribeirão Preto SP Brasil, Tel.: +55 16 3315-3910 - Ribeirão Preto - SP - Brazil
E-mail: revecap@usp.br

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[TFN1] ⁽¹⁾
Wages are measured in Brazilian Currency Reals; the average black market rate for the dollar

[TFN2] was 2.7 Reals per dollar

[TFN3] ⁽²⁾
Indicates individuals with 15 or more years of schooling

[TFN4] ⁽¹⁾
Women having at least one child 10 years old or younger

Wage⁽¹⁾	Wage in Reales
Educ	Years of Formal Education
Educ17⁽²⁾	Individual has at least under graduation degree
Exper	Years of experience in the labor market
SE	Individual lives in the Southeast Region
N	Individual lives in the North Region
NE	Individual lives in the Northeast Region
S	Individual lives in the South Region
CW	Individual lives in the Center West Region
Urban	Individual lives in an urban place
Maid formal	Individual works formally as a servant in someone's home
Maid informal	Individual works informally as a servant in someone's home
Formal Labor	Individual has a formal job
Age	In years
Unionized	Individual is a members of a union
Children	Number of Children
Indust. Sector	Individual works in the industrial sector
Child<10⁽³⁾	Individual has a less-than-10-year child
Dependent - Partner	Individual is the partner of the head of the family
Dependent - Son	Individual is the son of the head of the family
Dependent - Others	Individual is neither the partner nor the son of the head of the family