ABSTRACT
This chapter considers separately formal and informal job markets. Differences are observed between formal and informal workers regarding education, experience, health and earnings. Formal workers have higher levels of education, health and salaries compared to informal workers. There are a higher percentage of white workers in the formal sector, while blacks and mulattos concentrate in the informal sector. Formal workers concentrate in the Southeastern region as opposed to informal workers who concentrate in the Northeast, one of the poorer regions of Brazil. The chapter analyzes returns to education and experience, wage, gender, race discrimination, and market segmentation. It shows that 16" of the wage differential between formal and informal sectors, for men and women, was due to market segmentation. The chapter provides discussion on race and gender discrimination as well as market segmentation in the Brazilian labor market. Those factors exacerbate the income inequality problem in Brazil, requiring the implementation of policies.
