Wage structure differential and disability in Brazil — Underperformance or discrimination?

Castro, Nicole Rennó; Moreira, Gustavo Carvalho; Silva, Rodrigo Peixoto da

doi:10.1016/j.econ.2019.11.003

Cited by 6 publications

(12 citation statements)

References 26 publications

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“…Such a delineation is essential; without it, there is a risk of overestimating the scale of disability-related discrimination when analyzing the wage gap between PWD and PWOD. Our findings are consistent with international research, including DeLeire (2001) in the United States, Jones, Latreille and Sloane (2006a) in the United Kingdom, and Castro, Moreira and Silva (2019) in Brazil, further emphasizing the global relevance of this refined approach.…”

Section: Theoretical Contributionssupporting

confidence: 90%

“…Notably, the contribution of disability-related discrimination decreased to 27.7%, which is much lower than the previous estimation. The results indicate the potential for overestimating wage discrimination against PWD when unobserved productivity effects are not taken into account and is consistent with the study of DeLeire ( 2001) in the United States, Jones, Latreille and Sloane (2006a) in the United Kingdom, and Castro, Moreira and Silva (2019) in Brazil.…”

Section: Unobserved Productivity Effectsupporting

confidence: 88%

“…Globally, people with disabilities (PWD) face persistent wage disparities when compared to people without disabilities (PWOD), a phenomenon extensively documented across various countries (Baldwin and Choe 2014;Johnson 1994, 1995;DeLeire 2001;Gunderson and Lee 2016;Hallock, Jin and Waldman 2022;Johnson and Lambrinos 1985;Jones, Latreille and Sloane 2006a;Kidd, Sloane and Ferko 2000). Two primary factors are often cited to account for this wage gap: a productivity difference suggesting that PWD are less productive than PWOD due to varying levels of human capital investment, and a discrimination effect whereby employer prejudice diminishes earnings (Becker 1964;Castro, Moreira and Silva 2019;Cavanagh et al 2017;Cooke and Zhao 2020;Halima and Rococo 2014;Malo and Pagán 2012;Mincer 1974;Schur, Kruse and Blanck 2005). The prevailing theories of human capital and labor market discrimination provide frameworks to understand these disparities (Becker 1964(Becker , 1971Mincer 1974;Schultz 1961), yet their application yields different conclusions across diverse socioeconomic landscapes.…”

Section: Introductionmentioning

confidence: 99%

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Productivity difference or discrimination effect? Disability‐related wage gap in China

Liao,

Gao,

Zhu

et al. 2024

Asia Pac J Human Res

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The wage gap between people with disabilities (PWD) and people without disabilities (PWOD), which discourages PWD from entering the labor market, is attributed to two factors: productivity differences and discrimination effects. To determine whether PWD in China face wage discrimination in the labor market and which factor contributes more to the disability‐related wage gap in China, this study uses Chinese Household Income Project data (years 2007 and 2013) to estimate disability‐related wage discrimination, decomposing the wage gap between PWD and PWOD using the Oaxaca‐Blinder and Neumark approach. The findings demonstrate the presence of disability‐related discrimination in China, accounting for approximately 38.9%–52.4% of the wage gap between PWD and PWOD. Unobservable productivity effects contribute more to the wage gap than does disability‐related discrimination. Male PWD living in rural areas and less educated people are more likely to experience wage discrimination in China. Moreover, individuals with disabilities in rural areas experience significant disability‐related discrimination, whereas no such phenomenon is observed in urban or migrant populations. Future human resource management policies should consider antidiscrimination measures and improve the productivity of PWD, including providing reasonable accommodation for PWD in the workplace and ensuring equality in job searches and employment.

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Section: Theoretical Contributionssupporting

confidence: 90%

Section: Unobserved Productivity Effectsupporting

confidence: 88%

Section: Introductionmentioning

confidence: 99%

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Productivity difference or discrimination effect? Disability‐related wage gap in China

Liao,

Gao,

Zhu

et al. 2024

Asia Pac J Human Res

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“…, 2018; Baert, 2018) where the issue of discrimination has been studied substantially. Some studies now exist for countries like India (Agrawal, 2014; Kumar and Hashmi, 2020; Gupta and Kothe, 2021) and Brazil (Lovell, 2000; Castro et al. , 2019; Loureiro et al.…”

Section: Literature Reviewmentioning

confidence: 99%

Am I better off changing my name to “Alexander”? Ethnic discrimination and its effect on wages in the Russian labor market

Shakhbazov

Badreldin

2022

IJSSP

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PurposeThe purpose of this study is to investigate whether ethnic discrimination is present in the Russian labor market and whether it has a significant economic effect on the potential salaries of applicants.Design/methodology/approachData were collected using a correspondence audit for four experimental male applicants with identical professional and personal characteristics while differing only in applicant name as a signal of applicants' ethnic background. Implied ethnicities include Russians, Armenians, Jews and North Caucasians. Résumés were sent out to 800 real unique vacancies on behalf of the experimental applicants with a geographic focus on the capital Moscow.FindingsThe results of the analysis suggest that there is a significant difference in treatment in both response rate and potential average salaries on ethnic grounds. Disadvantaged groups were found to be systematically pushed into jobs paying 15% less monthly wage.Originality/valueThe study investigates the existence of ethnic discrimination in the Russian labor market and furthermore economically quantifies the effects of discrimination.

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“…Several studies covering the US, Western Europe, Brazil and Peru have found that these differences are explained in part, but not in full, by differences in physical health, leaving an unexplained portion which may be due to discrimination (DeLeire, 2001;Jones et al, 2006;Madden, 2004;Gannon and Munley, 2009;Halima and Rococo, 2014;Castro et al, 2017;Mougenot et al, 2017;Malo and Pag an, 2012). Further evidence for the possibility of discrimination comes from randomized experiments measuring call-backs from job applications which disclose a disability compared with those that do not, which receive 26% fewer callbacks for PwD (Ameri et al, 2018).…”

Section: Literature Reviewmentioning

confidence: 99%

Disability, employment and wages: evidence from Indonesia

Caron

2020

IJM

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PurposeThe purpose of this paper is to quantify the labor market outcomes of people with disabilities (PwD) in Indonesia and compares them to people without disabilities. It first studies the labor force participation of PwD before examining the large and persistent wage gaps they face. It explores whether these wage gaps are explained by differences in productivity, a distinction which has important implications for policies addressing these gaps.Design/methodology/approachThe analysis is based on the Indonesian Family Life Survey Wave 5, which includes unique questions allowing for several definitions of disability. Multinomial logistic regression is used to study differences in type of employment for PwD. Wage gaps are estimated and corrected for selection using propensity score matching, supported by a Heckman selection model and Oaxaca–Blinder decomposition. Comparisons with other physically disadvantaged subgroups and the analysis of heterogeneity by job requirements and sector of work explore whether productivity gaps help explain wage gaps.FindingsPwD generally have lower unconditional labor force participation, but disparities largely disappear when controlling for characteristics. Moreover, patterns vary depending on whether the measure of disability used depends on prior medical diagnosis. PwD that do not require prior diagnosis tend to work in more vulnerable employment. When they are employed for wages, people with these types of disabilities face lower wages, up to 22% lower. Meanwhile, (surprisingly) those with medically diagnosed conditions face no difference or a wage premium. This paper finds compelling evidence that, where a wage penalty exists, a substantial part is unexplained by observable characteristics.Originality/valuePrevious literature on disability has been mostly based on studies of high-income economies. This paper extends the literature to Indonesia, which differs from high-income contexts due to lack of mental healthcare resources and assistive technologies, as well as weaker rule of law. It provides unique insights based on types of disability and the salient dimensions of disability in the workplace. It also provides evidence that productivity differences do not explain the wage gap.

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Wage structure differential and disability in Brazil — Underperformance or discrimination?

Cited by 6 publications

References 26 publications

Productivity difference or discrimination effect? Disability‐related wage gap in China

Productivity difference or discrimination effect? Disability‐related wage gap in China

Am I better off changing my name to “Alexander”? Ethnic discrimination and its effect on wages in the Russian labor market

Disability, employment and wages: evidence from Indonesia

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