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Inequality on the top: Black and white employers in Brazilian job market

Abstract

The employers, due to their position on the capital-labour ratio, would probably occupy high-income strata. However, there are income gaps, as occurs with wage in black and white workers, where the former become employers in traditionally less privileged sectors and occupations with high levels of informality, in small ventures which with lower stability. This article: a) presents a brief profile of black and white employers in Brazil; b) demonstrate the insertion inequalities in the job market structure; c) measure the average income differentials in order to determine the weight of productive factors and race or sex-based discrimination over employer's average incomes. Based on quantitative analytic models, as the Blinder-Oaxaca decomposition method, we argue there is a significant wage gap between race and sex groups of Brazilian employers that cannot be credited only to associated factors like educational level, tenure or different occupation locations, but comes otherwise of an unexplained residue attributed to race and sex discrimination.

Keywords:
Inequality; Income; Employer; Race; Sex

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