Table 11: Decomposition of the wage gap

||(Brazil)<br>OLS|(RR & AM)<br>OLS|(Rest)<br>OLS|(Brazil)<br>Heckman|(RR & AM)<br>Heckman|(Rest)<br>Heckman|
|---|---|---|---|---|---|---|
|Di↵erential|||||||
|Brazilian|11.682<sup>_⇤⇤⇤_</sup>|11.663<sup>_⇤⇤⇤_</sup>|11.682<sup>_⇤⇤⇤_</sup>|11.682<sup>_⇤⇤⇤_</sup>|11.663<sup>_⇤⇤⇤_</sup>|11.682<sup>_⇤⇤⇤_</sup>|
||(0.012)|(0.001)|(0.012)|(0.012)|(0.001)|(0.012)|
|Venezuelan|11.715<sup>_⇤⇤⇤_</sup>|11.658<sup>_⇤⇤⇤_</sup>|11.746<sup>_⇤⇤⇤_</sup>|11.715<sup>_⇤⇤⇤_</sup>|11.658<sup>_⇤⇤⇤_</sup>|11.746<sup>_⇤⇤⇤_</sup>|
||(0.022)|(0.019)|(0.015)|(0.022)|(0.019)|(0.015)|
|Di↵erence|-0.033|0.006|-0.064<sup>_⇤⇤⇤_</sup>|-0.033|0.006|-0.064<sup>_⇤⇤⇤_</sup>|
||(0.020)|(0.021)|(0.012)|(0.020)|(0.021)|(0.012)|
|Decomposition|||||||
|Explained|-0.029<sup>_⇤⇤_</sup>|-0.017<sup>_⇤⇤_</sup>|-0.044<sup>_⇤⇤⇤_</sup>|-0.077<sup>_⇤⇤⇤_</sup>|-0.023<sup>_⇤⇤_</sup>|-0.098<sup>_⇤⇤⇤_</sup>|
||(0.011)|(0.007)|(0.008)|(0.021)|(0.008)|(0.022)|
|Unexplained|-0.004|0.023|-0.020<sup>_⇤⇤_</sup>|0.044<sup>_⇤_</sup>|0.029|0.034|
||(0.013)|(0.028)|(0.007)|(0.021)|(0.028)|(0.021)|
|Observations|15832423|238293|15594130|15832423|238293|15594130|

Standard error in parentheses and are clustered at the province level. _⇤ ⇤⇤ ⇤⇤⇤ p <_ 0 _._ 05, _p <_ 0 _._ 01, _p <_ 0 _._ 001 Oaxaca decomposition conducted controlling for selection. First column uses all data, second column uses data on Roraima (RR) and Amazonas (AM) and the third column shows the results from the rest of Brazil. Total non-Venezuelan migrants are used as the exclusion restriction for the Heckman selection models.

Overall, the results suggest that just like the education sector, equivalency of education or occupational downgrading is a major barrier to integration in the formal labor market. Although race plays an important role in the Brazilian labor market (M ́arquez et al., 2007), this paper does not find a statistically significant di↵erential e↵ect of race on Venezuelan asylum seekers and migrants’ performance in the formal labor market. The importance of Portuguese language skills and relocation program in promoting integration and productivity of Venezuelan refugees and migrants are also highlighted in the results, implying that having specialized employment counsellors for the Venezuelans may help them to access the formal labor market more.

# **5.3 Social Protection**

## **5.3.1 Integration**

Overall, Venezuelans seem to be less likely to register in _Cadastro ’Unico_ than Brazilians, but if they do register, they are equally likely or more likely to have access to _Bolsa Familia_ programs. However, on average, integration have continuously improved over the last 4 years, as Figure 13, shows, with Venezuelans being 0.7 times as likely to be registered as Brazilians in July 2020, while they were only 0.2 times as likely to be registered in December 2018, with an F-index of 17 in December 2018 and 42 in December 2020. Venezuelans still constitute a small fraction of the vulnerable people registered in _CadUnico_<sup>_ ́_</sup> , with 0.01 Venezuelans registered for each Brazilian in 2018, which increased to 0.10 Venezuelans registered for each Brazilian in 2020. Integration in _CadUnico_ varies across states. Relative probability and the F-index of registering in _CadUnico_ is the highest 40