IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v29y1997i8p1033-1044.html
   My bibliography  Save this article

Racial wage gaps and differences in human capital

Author

Listed:
  • Kwabena Gyimah-Brempong
  • Rudy Fichtenbaum

Abstract

This paper uses the Cotton/Neumark decomposition methodology and 1990 CPS data to investigate the relative importance of labour market structure and human capital in explaining the white male/Asian, white male/black, white male/Hispanic wage gaps. We find that labour market structure is more important than human capital in explaining the white minority wage gaps. Moreover, most of the labour market structural effects are due to differential returns to white structural characteristics. Our result is robust to the specification of human capital. Our results contradict the results of research that indicate that the white/minority wage gaps can be explained solely by differences in the endowment of human capital. Our results have implications for narrowing the wage gaps between whites and racial minorities.

Suggested Citation

  • Kwabena Gyimah-Brempong & Rudy Fichtenbaum, 1997. "Racial wage gaps and differences in human capital," Applied Economics, Taylor & Francis Journals, vol. 29(8), pages 1033-1044.
    • Handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1033-1044
    DOI: 10.1080/000368497326426
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/000368497326426
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/000368497326426?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jeremiah Cotton, 1993. "Color or culture?: Wage differences among non-hispanic black males, hispanic black males and hispanic white males," The Review of Black Political Economy, Springer;National Economic Association, vol. 21(4), pages 53-67, March.
    2. Steven Shulman, 1987. "Discrimination, Human Capital, and Black-White Unemployment: Evidence from Cities," Journal of Human Resources, University of Wisconsin Press, vol. 22(3), pages 361-376.
    3. Paglin, Morton & Rufolo, Anthony M, 1990. "Heterogeneous Human Capital, Occupational Choice, and Male-Female Earnings Differences," Journal of Labor Economics, University of Chicago Press, vol. 8(1), pages 123-144, January.
    4. Randall K. Filer, 1985. "Male-Female Wage Differences: The Importance of Compensating Differentials," ILR Review, Cornell University, ILR School, vol. 38(3), pages 426-437, April.
    5. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    6. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    7. Reimers, Cordelia W, 1983. "Labor Market Discrimination against Hispanic and Black Men," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 570-579, November.
    8. Nan L. Maxwell, 1994. "The Effect on Black-White Wage Differences of Differences in the Quantity and Quality of Education," ILR Review, Cornell University, ILR School, vol. 47(2), pages 249-264, January.
    9. Barry R. Chiswick, 1988. "Differences in Education and Earnings Across Racial and Ethnic Groups: Tastes, Discrimination, and Investments in Child Quality," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 103(3), pages 571-597.
    10. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
    11. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    12. Stephen A. Woodbury, 1993. "Culture and Human Capital: Theory and Evidence or Theory Versus Evidence?," Book chapters authored by Upjohn Institute researchers, in: William Darity Jr. (ed.),Labor Economics: Problems Analyzing Labor Markets, pages 239-267, W.E. Upjohn Institute for Employment Research.
    13. Richard J. Butler, 1982. "Estimating Wage Discrimination in the Labor Market," Journal of Human Resources, University of Wisconsin Press, vol. 17(4), pages 620-621.
    14. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-243, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. O'Gorman, Melanie, 2010. "Educational disparity and the persistence of the black-white wage gap in the U.S," Economics of Education Review, Elsevier, vol. 29(4), pages 526-542, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kwabena Gyimah-Brempong & Rudy Fichtenbaum, 1994. "Regional Differences In Labor Market Discrimination," The Review of Regional Studies, Southern Regional Science Association, vol. 24(1), pages 13-36, Summer.
    2. Ricardo Mora, 2008. "A nonparametric decomposition of the Mexican American average wage gap," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(4), pages 463-485.
    3. Chen, Yiu Por (Vincent) & Zhang, Yuan, 2018. "A decomposition method on employment and wage discrimination and its application in urban China (2002–2013)," World Development, Elsevier, vol. 110(C), pages 1-12.
    4. Günalp, Burak & Cilasun, Seyit Mümin & Acar, Elif Öznur, 2013. "Male-Female Labor Market Participation and the Extent of Gender-Based Wage Discrimination in Turkey," MPRA Paper 51503, University Library of Munich, Germany.
    5. Tushar Agrawal, 2014. "Gender and caste-based wage discrimination in India: some recent evidence [Geschlecht und Kaste-ansässige Lohndiskriminierung in Indien: Einige Neue Beweise]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 47(4), pages 329-340, December.
    6. Somasree Poddar & Ishita Mukhopadhyay, 2019. "Gender Wage Gap: Some Recent Evidences from India," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(1), pages 121-151, March.
    7. Dominique Meurs & Sophie Ponthieux, 2006. "L'écart des salaires entre les femmes et les hommes peut-il encore baisser ?," Économie et Statistique, Programme National Persée, vol. 398(1), pages 99-129.
    8. Paternostro, Stefano & Sahn, David E., 1999. "Wage determination and gender discrimination in a transition economy : the case of Romania," Policy Research Working Paper Series 2113, The World Bank.
    9. Golder, Stefan M., 2000. "Endowment or Discrimination? An Analysis of Immigrant-Native Earnings Differentials in Switzerland," Kiel Working Papers 967, Kiel Institute for the World Economy (IfW Kiel).
    10. Roshchin, Sergey & Yemelina, Natalya, 2021. "Gender wage gap decomposition methods: Comparative analysis," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 62, pages 5-31.
    11. C Dougherty, 2003. "Why is the Rate of Return to Schooling Higher For Women Than For Men?," CEP Discussion Papers dp0581, Centre for Economic Performance, LSE.
    12. Almas Heshmati & Biwei Su, 2017. "Analysis Of Gender Wage Differential In China’S Urban Labor Market," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(02), pages 423-445, June.
    13. Patricia E. Gaynor & Garey C. Durden, 1997. "The Cost of Being Nonwhite and the Added Cost of Being Female in The South and Southwest," The Review of Regional Studies, Southern Regional Science Association, vol. 27(2), pages 195-209, Fall.
    14. Dileni Gunewardena & Darshi Abeyrathna & Amalie Ellagala & Kamani Rajakaruna & Shobana Rajendran, 2008. "Glass Ceilings, Sticky Floors or Sticky Doors? A Quantile Regression Approach to Exploring Gender Wage Gaps in Sri Lanka," Working Papers PMMA 2008-04, PEP-PMMA.
    15. Mora, Ricardo, 1999. "Third-generation mexican american workers in the south-west: a case of wage discrimination," UC3M Working papers. Economics 6109, Universidad Carlos III de Madrid. Departamento de Economía.
    16. Jan Saarela & Fjalar Finnäs, 2004. "Interethnic Wage Variation in the Helsinki Area," Finnish Economic Papers, Finnish Economic Association, vol. 17(1), pages 35-48, Spring.
    17. Ma, Xinxin, 2022. "Parenthood and the gender wage gap in urban China," Journal of Asian Economics, Elsevier, vol. 80(C).
    18. Günalp, Burak & Cilasun, Seyit Mümin & Acar, Elif Öznur, 2013. "Male-Female Labor Market Participation and the Extent of Gender-Based Wage Discrimination in Turkey," MPRA Paper 51503, University Library of Munich, Germany.
    19. Karolina Goraus Tanska & Joanna Tyrowicz & Lucas Augusto van der Velde, 2020. "How rankings disguise gender inequality: A comparative analysis of cross-country gender equality rankings based on adjusted wage gaps," PLOS ONE, Public Library of Science, vol. 15(11), pages 1-21, November.
    20. Gomes, Magno Rogério & Souza, Solange de Cássia Inforzato de & Mantovani, Gabriela Gomes & Paiva, Vanessa Fortunato de, 2020. "Wage gap decomposition models: A methodological contribution," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 39(2), March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:29:y:1997:i:8:p:1033-1044. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.