Assortative Matching or Exclusionary Hiring? The Impact of Employment and Pay Policies on Racial Wage Differences in Brazil

We measure the effects of firm policies on racial pay differences in Brazil. Non-Whites are less likely to be hired by high-wage firms, explaining about 20 percent of the racial wage gap for both genders. Firm-specific pay premiums for non-Whites are also compressed relative to Whites, contributing...

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Veröffentlicht in:The American economic review 2021-10, Vol.111 (10), p.3418-3457
Hauptverfasser: Gerard, François, Lagos, Lorenzo, Severnini, Edson, Card, David
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creator Gerard, François
Lagos, Lorenzo
Severnini, Edson
Card, David
description We measure the effects of firm policies on racial pay differences in Brazil. Non-Whites are less likely to be hired by high-wage firms, explaining about 20 percent of the racial wage gap for both genders. Firm-specific pay premiums for non-Whites are also compressed relative to Whites, contributing another 5 percent for that gap. A counterfactual analysis reveals that about two-thirds of the underrepresentation of non-Whites at higher-wage firms is explained by race-neutral skill-based sorting. Non-skill-based sorting and differential wage setting are largest for college-educated workers, suggesting that the allocative costs of discriminatory hiring and pay policies may be relatively large in Brazil.
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source Jstor Complete Legacy; American Economic Association; EBSCOhost Business Source Complete
subjects 2002–2014
Brasilien
Ethnische Diskriminierung
Lohnstruktur
Vergütungssystem
title Assortative Matching or Exclusionary Hiring? The Impact of Employment and Pay Policies on Racial Wage Differences in Brazil
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