Occupational segregation and wage differentials by gender and race in Brazil: evidence from a quantile decomposition

Abstract

PurposeThis paper examines the role of occupational segregation in the evolution of wage differentials by gender and race in the Brazilian labor market between 2005 and 2015.Design/methodology/approachThe author uses microdata from the National Household Sample Survey and adopts two occupational integration typology to capture both horizontal and vertical segregation. The decomposition method proposed by Firpo et al. (2009) is employed to investigate the determinants of changes in differentials along the wage distribution.FindingsResults suggest a glass ceiling effect for all groups compared to white men. Gender and racial discrimination persist, especially at the top of the distribution. For both black women and men, observable characteristics account for most of the wage differentials, while for white women, the opposite occurs because of their education level. Vertical segregation behavior indicates that white men continue over-represented in higher-paid occupations. Although women improved their relative position in the occupational hierarchy, horizontal segregation behavior shows that their concentration in female-dominated occupations has not reduced, except in extreme quantiles. Education played a crucial role in reducing wage gaps, and regional differences stood out as a significant factor of the racial disadvantage.Originality/valueThe paper shows significant differences between the groups regarding verticalization and horizontalization of occupational structure along the wage distribution and over time, contributing to filling some gaps in the literature concerning the wage stratification based on gender and race in Brazil. Occupational segregation as a composition factor of the groups determines their positions in a vertically hierarchical and socially stratified occupational structure. The behavior of horizontal and vertical segregations evidences the continue under-valorization of female occupations and the barriers faced by racial and gendered groups to overcome the glass ceiling effect. Recognize the intersectionality of gender and race in addressing inequalities is fundamental to promote policies that overcome them.