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The effect on black-white wage differences of differences in the quantity and quality of education

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Author Info
Nan L. Maxwell
Abstract

Using data from the National Longitudinal Survey of Youth for the years 1979-88, the author examines the extent to which black-white differences in educational attainment, educational quality, and unmeasured individual ability can explain black-white wage differences. An analysis that corrects for both selectivity and ability biases inherent in estimating the education-wage relationship shows that the main source of the black-white wage differential is the racial difference in the quality rather than quantity of schooling. In fact, the author concludes, closing the racial gap in the basic skills learned in school could reduce the wage differential by two-thirds. (Abstract courtesy JSTOR.)

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Publisher Info
Article provided by ILR Review, ILR School, Cornell University in its journal ILR Review.

Volume (Year): 47 (1994)
Issue (Month): 2 (January)
Pages: 249-264
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Handle: RePEc:ilr:articl:v:47:y:1994:i:2:p:249-264

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  1. Li Gan & Guan Gong, 2004. "Mortality Risk and Educational Attainment of Black and White Men," NBER Working Papers 10381, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Barr & Oduro, Abena, 2000. "Ethnicity and wage determination in Ghana," Policy Research Working Paper Series 2506, The World Bank. [Downloadable!]
  3. Heather Antecol & Kelly Bedard, 2001. "The Racial Wage Gap: The Importance of Labor Force Attachment Differences Across Black, Mexican and White Men," Claremont Colleges Working Papers 2001-35, Claremont Colleges. [Downloadable!]
  4. William Rodgers & William Spriggs, 1996. "What does the AFQT really measure: Race, wages, schooling and the AFQT score," The Review of Black Political Economy, Springer, vol. 24(4), pages 13-46, June. [Downloadable!] (restricted)
  5. Derek A. Neal & William R. Johnson, 1995. "The Role of Pre-Market Factors in Black-White Wage Differences," NBER Working Papers 5124, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Kenneth Couch & Mary C. Daly, 2000. "Black-white wage inequality in the 1990s: a decade of progress," Working Papers in Applied Economic Theory 2000-07, Federal Reserve Bank of San Francisco. [Downloadable!]
    Other versions:
  7. William Rodgers & John Holmes, 2004. "New estimates of within occupation African American-white wage gaps," The Review of Black Political Economy, Springer, vol. 31(4), pages 69-88, June. [Downloadable!] (restricted)
  8. Heather Antecol & Kelly Bedard, 2002. "The Racial Wage Gap: The Importance of Labor Force Attachment Differences," University of California at Santa Barbara, Economics Working Paper Series 7-02, Department of Economics, UC Santa Barbara. [Downloadable!]
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