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Male Interracial Wage Differentials: Competing Explanations

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Author Info
Mason, Patrick L

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Abstract

Persistent interracial wage differentials present a challenge for neoclassical models of discrimination, which claim that long-rung competition is not consistent with persistent discrimination. This study provides an empirical examination of the missing variable and job competition models of interracial wage inequality. The results argue strongly against the missing variables approach and strongly in favor of the job competition model. Specifically, this study finds that about one-half of the male African American-white and Latino-white interracial wage differentials are due to market discrimination against African Americans and Latinos. In addition, the positive and significant coefficients on the race-gender employment-density variables strongly affirm the job competition model's contention that access to white (especially) male-dominated jobs increases an individual's wage rate--regardless of race. Racial job segregation, then, is an important explanatory variable for racial wage discrimination. Copyright 1999 by Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal Cambridge Journal of Economics.

Volume (Year): 23 (1999)
Issue (Month): 3 (May)
Pages: 261-99
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Handle: RePEc:oup:cambje:v:23:y:1999:i:3:p:261-99

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  2. Manuel Carvajal, 2006. "Economic grounds for affirmative action: The evidence on architects and engineers in South Florida," Review of Social Economy, Taylor and Francis Journals, vol. 64(4), pages 515-538, December. [Downloadable!] (restricted)
  3. Mason, Patrick L., 2007. "Driving while black: do police pass the test?," MPRA Paper 11328, University Library of Munich, Germany. [Downloadable!]
  4. Andrew B. Trigg, 2002. "Using Micro Data to Test the Divergence between Prices and Labour Values," International Review of Applied Economics, Taylor and Francis Journals, vol. 16(2), pages 169-186, April. [Downloadable!] (restricted)
  5. Hirsch, Barry T. & Macpherson, David A., 2003. "Wages, Sorting on Skill, and the Racial Composition of Jobs," IZA Discussion Papers 741, Institute for the Study of Labor (IZA). [Downloadable!]
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  6. Gunseli Berik & Yana van der Meulen Rodgers & Joseph E. Zveglich Jr., 2003. "Does Trade Promote Gender Wage Equity?: Evidence from East Asia," Economics Working Paper Archive 373, Levy Economics Institute, The. [Downloadable!]
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  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)
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