The gender wage-gap in Brazil and the role of discrimination

The gender pay-gap is not a new phenomenon in Brazil. Since the increase of female participation on the labor market, the gap has remained a persistent problem that has generated a wide range of studies on the topic. The Human Capital Theory argues that individuals’ education and on-the-job experience are essential determinants on wage estimations. This assessment is not disputed in the literature however; there are still differences on wages that are not explained by the traditional variables suggested in the theory. These differences are usually attributed to active discrimination against women. This study suggests that discrimination is not just one reason behind the gap but instead, it is the most relevant reason since women have achieved equal or even higher productive characteristics as men and their ability on obtaining financial compensation for their work is being severely affected.