Occupational and Income Polarization in the Labor Market: The Structure of Disadvantage by Gender and Race in Brazil

Ana Hermeto, Cedeplar, UFMG

Our objective is to measure how occupational polarization impacts differently male and female, blacks and whites salaries in Brazil. Using large data sets from 1986 to 2011, we estimated the effects of occupational characteristics on patterns of income inequalities. Hierarchical models incorporated occupational attributes (technology, skills and composition) along with individual characteristics (age, gender, race, education). Results evidenced increased demand for labor in non-routine occupations that require advanced technological skills, which also showed the expansion of gender and racial wage gaps. Women’s salaries are more sensitive to occupational characteristics. Analysis of the interaction of sex and racial ratios and wage gap in a time perspective showed that the sources of wage inequality between occupations weaken, while the sources of inequality within the occupations become stronger in the high technological group. Results provide a head start on the demographic nature of occupational polarization and its relationship to gender and racial inequalities.