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- Title
Assortative Matching or Exclusionary Hiring? The Impact of Employment and Pay Policies on Racial Wage Differences in Brazil.
- Authors
Gerard, François; Lagos, Lorenzo; Severnini, Edson; Card, David
- Abstract
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. (JEL J15, J24, J31, J41, J46, J71, O15)
- Subjects
BRAZIL; RACIAL differences; EMPLOYMENT policy; GENDER wage gap; INCOMES policy (Economics); WAGE differentials; PAY for performance
- Publication
American Economic Review, 2021, Vol 111, Issue 10, p3418
- ISSN
0002-8282
- Publication type
Article
- DOI
10.1257/aer.20181596