Income differences associated to race: Brazil, 2001

Abstract

The paper analyses how much of the difference in earnings between races is caused by workers’ characteristics and how much can be attributed to discrimination. African American workers receive 43.8% less than white ones and 73.2% to 78.3% of this difference is due to differences in workers’ skills whereas 21.7% to 26.8% remains unexplained and can be attributed to discrimination. On the other hand, 79.6% to 87.9% of the 119.4% income differential in favor of yellows, when compared to whites, is due to individual workers’ characteristics.