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A Note on School Quality, Educational Attainment and the Wage Gap

Author

Listed:
  • Srikanth Ramamurthy

    (Loyola University Maryland)

  • Norman Sedgley

    (Loyola University Maryland)

Abstract

This paper explores the linkage between school quality, educational attainment and the wage gap. In a model of statistical discrimination based on both the quality and quantity of schooling, we show that lower-quality education can, on average, lead to lower human capital accumulation if agents anticipate future labor market discrimination. Because blacks in general have less access to good-quality schools compared to whites, this link provides a novel explanation for the differences in black–white educational attainment and the resulting wage gap.

Suggested Citation

  • Srikanth Ramamurthy & Norman Sedgley, 2019. "A Note on School Quality, Educational Attainment and the Wage Gap," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 45(3), pages 415-421, June.
    • Handle: RePEc:pal:easeco:v:45:y:2019:i:3:d:10.1057_s41302-018-00132-1
    DOI: 10.1057/s41302-018-00132-1
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    References listed on IDEAS

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    1. Kenneth Couch, 2002. "Black-White Wage Inequality in the 1990s: a Decade of Progress," Economic Inquiry, Western Economic Association International, vol. 40(1), pages 31-41, January.
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    3. David Card & Alan B. Krueger, 1992. "School Quality and Black-White Relative Earnings: A Direct Assessment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 151-200.
    4. Coate, Stephen & Loury, Glenn, 1993. "Antidiscrimination Enforcement and the Problem of Patronization," American Economic Review, American Economic Association, vol. 83(2), pages 92-98, May.
    5. Amparo Castelló‐Climent & Rafael Doménech, 2008. "Human Capital Inequality, Life Expectancy And Economic Growth," Economic Journal, Royal Economic Society, vol. 118(528), pages 653-677, April.
    6. Card, David & Krueger, Alan B, 1992. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 1-40, February.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Wage gap; Statistical discrimination; School quality; Human capital choice;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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