In Brazil, the relationship between industrialization and racial inequ
ality has been central to the discussion of post-Abolition race relati
ons because the country has had high levels of racial inequality along
with rapid but uneven industrialization. I examine how racial inequal
ity in occupations varies with levels of industrialization across 74 B
razilian metropolitan areas in 1980. I find that industrialized areas
have lower occupational inequality overall and especially in blue-coll
ar occupations; but at higher occupational levels, racial inequality i
s either greater or is unaffected by industrialization. These results
persist despite controls for the percent nonwhite in the population an
d educational inequality. Thus, this study supports the conventional v
iew that race loses salience to class as industrial development increa
ses, but only for blue-collar occupations; inequality at the white-col
lar level is unaffected or even increases with industrialization. Incr
eased educational opportunity has effects on inequality similar to tho
se of industrialization. Implications for Brazilian race relations are
discussed.