Race Inequality in Education and Earnings in Brazil and South Africa

Brazil and South Africa are among the most socio-economically unequal countries in the world; education is often cited as the main vehicle for alleviating or exacerbating such pervasive inequality. Equally important, Brazil and South Africa are among the largest multiracial societies in the world, with striking disadvantages in social and economic opportunities and outcomes among the non-white population. The first goal of this paper is to examine cohort patterns of educational inequality by race in Brazil and South Africa. Both countries now witness the largest ever cohorts incorporated into the educational system; yet, despite overwhelming improvements in educational opportunity, it remains unclear whether race inequalities in earnings have declined for younger cohorts. The second goal of this paper is therefore to examine cohort changes in racial differences in earnings in Brazil and South Africa. We use data from large nationally representative household surveys (PNAD for Brazil; GHS for South Africa). To address high unemployment rates, particularly among black South Africans, and account for different propensities of reporting positive earnings, we utilize propensity score matching. Our preliminary findings suggest that white-black inequalities in earnings have persisted despite recent gains in education.