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Explaining Black-White Wage Convergence, 1940–1950

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  • Robert A. Margo

Abstract

During the 1940s, racial differences in wages narrowed at an unusually rapid pace. Using a decomposition technique different from that of previous studies, the author shows that wage compression between and within groups—the so-called “Great Compression†—was a major factor behind racial wage convergence in the 1940s. In addition to wage compression, occupational shifts, internal migration, and diminishing racial differences in schooling helped to narrow the black-white wage gap between 1940 and 1950.

Suggested Citation

  • Robert A. Margo, 1995. "Explaining Black-White Wage Convergence, 1940–1950," ILR Review, Cornell University, ILR School, vol. 48(3), pages 470-481, April.
  • Handle: RePEc:sae:ilrrev:v:48:y:1995:i:3:p:470-481
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    Cited by:

    1. Collins, William J. & Margo, Robert A., 2001. "Race and Home Ownership: A Century-Long View," Explorations in Economic History, Elsevier, vol. 38(1), pages 68-92, January.
    2. Virginia Parks, 2011. "Revisiting Shibboleths of Race and Urban Economy: Black Employment in Manufacturing and the Public Sector Compared, Chicago 1950–2000," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 35(1), pages 110-129, January.
    3. Jung, Yeonha, 2018. "How The Legacy of Slavery Has Survived: A Mechanism through Labor Market Institutions and Human Capital," SocArXiv snpg2, Center for Open Science.
    4. Eric D. Gould, 2021. "Torn Apart? The Impact of Manufacturing Employment Decline on Black and White Americans," The Review of Economics and Statistics, MIT Press, vol. 103(4), pages 770-785, October.
    5. Ariel J. Binder & Caroline Walker & Jonathan Eggleston & Marta Murray-Close, 2022. "Race, Class, and Mobility in U.S. Marriage Markets," Working Papers 22-59, Center for Economic Studies, U.S. Census Bureau.
    6. Patrick Bayer & Kerwin Kofi Charles, 2016. "Divergent Paths: Structural Change, Economic Rank, and the Evolution of Black-White Earnings Differences, 1940-2014," NBER Working Papers 22797, National Bureau of Economic Research, Inc.
    7. Jung, Yeonha, 2018. "The Legacy of King Cotton: Agricultural Patterns and the Quality of Structural Change," SocArXiv trjfz, Center for Open Science.
    8. Duque, Valentina & Schmitz, Lauren L., 2020. "The Influence of Early-life Economic Shocks on Long-term Outcomes: Evidence from the U.S. Great Depression," Working Papers 2020-11, University of Sydney, School of Economics.
    9. Bailey, Martha J. & Collins, William J., 2006. "The Wage Gains of African-American Women in the 1940s," The Journal of Economic History, Cambridge University Press, vol. 66(3), pages 737-777, September.
    10. Scotese Carol A., 2010. "War Mobilization and the Great Compression," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-29, July.
    11. William J. Collins & Marianne H. Wanamaker, 2017. "African American Intergenerational Economic Mobility Since 1880," NBER Working Papers 23395, National Bureau of Economic Research, Inc.

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