Wage Discrimination when Identity is Subjective: Evidence from Changes in Employer-Reported Race

Posted: 13 Sep 2013 Last revised: 21 Mar 2017

See all articles by Christopher Cornwell

Christopher Cornwell

University of Georgia, C. Herman and Mary Virginia Terry College of Business, Department of Economics

Jason Rivera

University of Georgia - C. Herman and Mary Virginia Terry College of Business - Department of Economics

Ian M. Schmutte

University of Georgia - C. Herman and Mary Virginia Terry College of Business - Department of Economics

Date Written: August 24, 2015

Abstract

In Brazil, different employers report different racial classifications for the same worker. We use the variation across employers to identify the relationship between race and wages. As much as 40 percent of the raw racial wage gap remains after controlling for all individual characteristics that do not change across jobs. Workers whose reported race changes from non-white to white receive a wage increase; those who change from white to non-white realize a symmetric wage decrease. We formally test, and reject, the hypothesis that our results are driven by misclassification.

Keywords: Discrimination, Wage Differential, Economics of Race

JEL Classification: J15, J31, J62, J71, D83, C2

Suggested Citation

Cornwell, Christopher Mark and Rivera, Jason and Schmutte, Ian M., Wage Discrimination when Identity is Subjective: Evidence from Changes in Employer-Reported Race (August 24, 2015). Available at SSRN: https://ssrn.com/abstract=2324578 or http://dx.doi.org/10.2139/ssrn.2324578

Christopher Mark Cornwell

University of Georgia, C. Herman and Mary Virginia Terry College of Business, Department of Economics ( email )

Terry College of Business
U of Georgia
Athens, GA 30602
United States
706-542-3670 (Phone)
706-542-3376 (Fax)

Jason Rivera (Contact Author)

University of Georgia - C. Herman and Mary Virginia Terry College of Business - Department of Economics ( email )

Athens, GA 30602-6254
United States

Ian M. Schmutte

University of Georgia - C. Herman and Mary Virginia Terry College of Business - Department of Economics ( email )

Athens, GA 30602-6254
United States

HOME PAGE: http://people.terry.uga.edu/schmutte/

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
2,645
PlumX Metrics