Why Are Larger Employers More Racially Diverse?
Early Career Research Award
In Brazil, nonwhite workers tend to work in larger establishments. We propose using administrative employer-employee data to unpack the sources of this pattern and their consequences for racial inequality in the labor market. We plan to evaluate whether this sorting pattern is driven by establishment size per se or other job characteristics correlated with size, including employee skills. We plan to test for a potential mechanism: that larger firms have more formal and structured human resource practices, leading to more equitable hiring outcomes. Finally, we plan to evaluate the implications of this sorting pattern for workplace segregation and earnings inequality.