Earning differentials by occupational categories: Gender, race and regions

Ronaldo de Albuquerque e Arraes, Francisca Lívia Souza Menezes and Andrei Gomes Simonassi
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Ronaldo de Albuquerque e Arraes: Federal University of Ceará, Brazil
Francisca Lívia Souza Menezes: University of Leicester, United Kingdom
Andrei Gomes Simonassi: Federal University of Ceará, Brazil

Economia, 2014, vol. 15, issue 3, 363_386

Abstract: Analyzing the income differentials amongst the Brazilian workers’ occupations is the focus of this paper. Due to the wide diversity of occupations cataloged by the IBGE (around 800), a theoretical procedure is applied to reduce them to only seven in order to allow statistical treatment of the data. The methodological approach is based on Mincerian quantile equations to be estimated in various strata of the workers’ income distribution, on which a breakdown is made to check the gap among the individuals’ income with distinct inherent attributes and between those living in both more and less developed regions. The estimation results ensure the importance of breakdown analysis for occupational strata as well as for quantiles, since the effects of explanatory variables are distinct along the income distribution and vary among occupations. Regarding the gaps in this distribution, there is a glass ceiling effect in some occupations, that is, the gap is greater at the top of distribution, although in most cases the wider gap occurs at the bottom of the distribution – sticky floor effect, which makes this a distinguished result from other studies. Moreover, contrary to the gap in gender, which is due to the compensation characteristics of individuals only (discrimination), income differentials between regions and races also occur from the heterogeneous characteristics of workers.

Keywords: Earning differentials in occupations; Counterfactual decomposition; Mincerian quantile equations; Discrimination (search for similar items in EconPapers)
JEL-codes: C21 J31 J44 J71 (search for similar items in EconPapers)
Date: 2014
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