Decomposition of income differences between the obese and the non-obese in Brazil

Abstract

Purpose

This paper aims to measure income differences between the obese and the non-obese for Brazil and understand which components explain these differences.

Design/methodology/approach

A decomposition method based on recentered influence functions, proposed by Firpo et al. (2007) is used, and the procedure is applied to individuals' income distribution quantiles.

Findings

The results confirm the existence of a wage gap between obese and non-obese men and women. In the case of men, the difference was favorable to the obese in all quantiles and in the case of women, favorable to the non-obese. The biggest differences were observed at the top of the distribution. This difference is mostly explained by observable characteristics that cause the wage gap between groups. The wage structure effect, which may have elements associated with discrimination in its composition, was not relevant in most quantiles.

Research limitations/implications

Unobserved factors can impact the results, but our methodology tries to minimize such impact.

Practical implications

The authors can only observe a point in time and with that they do not know how long the individual has been obese.

Originality/value

The methodology adopted in the work is recent; moreover, studies on the effects of obesity on the labor market are still recent in Brazilian research.

Citation

Souza, W.P.S.d.F., Sousa, D.T.d. and Cruz, M.S.d. (2023), "Decomposition of income differences between the obese and the non-obese in Brazil", International Journal of Social Economics, Vol. 50 No. 7, pp. 894-909. https://doi.org/10.1108/IJSE-11-2021-0687