This study provides a unique analysis of the evolution of gender and racial occupational segregation in Brazil covering the period from 1987 to 2006. Employing a newly harmonized occupational classification, it provides new insights into the nature and evolution of occupational segregation and on the forces driving these changes over this period of time. Three major findings emerge. First, gender segregation is always greater than racial segregation, but the latter has been more persistent over time. Second, segregation has declined mainly in the formal labor market. Third, this decline has been mainly driven by changes in gender and racial composition within occupations.