Determinants and income differentials between workers with and without disabilities in the formal labor market of Rio Grande do Norte

Abstract

This study analyzes wage determinants and income differentials between workers with and without disabilities in the formal labor market of the state of Rio Grande do Norte. Based on Human Capital Theory and Theories of Discrimination, the research uses a quantitative approach using microdata from the 2023 Annual Social Information Report. The salary structure was analyzed through Mincerian regressions and the Oaxaca-Blinder decomposition. The results reveal that, contrary to the national outlook, workers with disabilities in the formal market of Rio Grande do Norte have a slightly higher average hourly wage. However, the analysis of wage premiums points to counterintuitive results: people with disabilities face an intersectional penalty for race three times higher and do not obtain a return on experience, although they benefit from public sector jobs. The Oaxaca-Blinder decomposition showed that the average wage difference between groups has no statistical significance. It is concluded that the absence of wage discrimination suggests equitable remuneration for people with disabilities who manage to access the formal market in the state. Thus, the evidence indicates that the critical challenge in Rio Grande do Norte lies not in internal remuneration, but in the barriers to access to formal employment, such as high informality and educational deficits that restrict the insertion of these workers.