Decomposition of income differences between the obese and the non-obese in Brazil

Wallace Patrick Santos de Farias Souza, Daniel Tomaz de Sousa and Mércia Santos da Cruz

International Journal of Social Economics, 2023, vol. 50, issue 7, 894-909

Abstract: Purpose - This paper aims to measure income differences between the obese and the non-obese for Brazil and understand which components explain these differences. Design/methodology/approach - A decomposition method based on recentered influence functions, proposed by Firpoet al. (2007) is used, and the procedure is applied to individuals' income distribution quantiles. Findings - The results confirm the existence of a wage gap between obese and non-obese men and women. In the case of men, the difference was favorable to the obese in all quantiles and in the case of women, favorable to the non-obese. The biggest differences were observed at the top of the distribution. This difference is mostly explained by observable characteristics that cause the wage gap between groups. The wage structure effect, which may have elements associated with discrimination in its composition, was not relevant in most quantiles. Research limitations/implications - Unobserved factors can impact the results, but our methodology tries to minimize such impact. Practical implications - The authors can only observe a point in time and with that they do not know how long the individual has been obese. Originality/value - The methodology adopted in the work is recent; moreover, studies on the effects of obesity on the labor market are still recent in Brazilian research.

Keywords: Obesity; Wage gap; Unconditional quantile decomposition; Composition effect; Wage structure effect (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijsepp:ijse-11-2021-0687

DOI: 10.1108/IJSE-11-2021-0687

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