The differentials of wage by gender in Rio Grande do Sul: an application of the Heckman Model and Oaxaca-Blinder Decomposition

Abstract

The objective of this paper is to analyze the difference in wages between men and women in Rio Grande do Sul Therefore, from the 2010 Census database. - IBGE, it is estimated an mincerian equation with correction for self-selection in order to assess the factors that are determining the wages of individuals. The results show that education has a fundamental role in determining wage. In addition, the disaggregation of schooling variable allows to check the returns on the wage generated by each level of educational qualification. After it the decomposition of the gender wage differential is estimated using the Oaxaca-Blinder procedure. The decomposition of this differential shows that there is statistical discrimination against women in the state of 15% in their wages, both between activity sectors and within sectors. Furthermore, within sector discrimination had higher weight in the differential than between discrimination.