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What Went Wrong? The Erosion of Relative Earnings and Employment among Young Black Men in the 1980s

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Author Info
Bound, John
Freeman, Richard B

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Abstract

This paper shows a widening in black-white earnings and employment gaps among young men from the mid-1970s through the 1980s. Earnings gaps increased most among college graduates and in the Midwest, while gaps in employment-population rates grew most among dropouts. The authors attribute the differential widening to shifts in demand for subgroups due to shifting industry and regional employment, the falling real minimum wage and deunionization, the growing supply of black to white workers that was marked among college graduates, and to increased crime among dropouts. The different factors affecting subgroups highlight the economic diversity of black Americans. Copyright 1992, the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Publisher Info
Article provided by MIT Press in its journal Quarterly Journal of Economics.

Volume (Year): 107 (1992)
Issue (Month): 1 (February)
Pages: 201-32
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Handle: RePEc:tpr:qjecon:v:107:y:1992:i:1:p:201-32

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  1. Borghans, Lex & ter Weel, Bas & Weinberg, Bruce A., 2005. "People People: Social Capital and the Labor-Market Outcomes of Underrepresented Groups," IZA Discussion Papers 1494, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. David Card & Thomas Lemieux, 1993. "Wage Dispersion, Returns to Skill, and Black-White Wage Differentials," Working Papers 691, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
    Other versions:
  3. Lochner, L., 1999. "Education, Work, and Crime: Theory and Evidence," RCER Working Papers 465, University of Rochester - Center for Economic Research (RCER). [Downloadable!]
  4. Steven Raphael & RUDOLF WINTER-EBMER, 1998. "Identifying the Effect of Unemployment on Crime," University of California at San Diego, Economics Working Paper Series 1998-19, Department of Economics, UC San Diego. [Downloadable!]
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  5. Jeff Grogger, 1997. "Market Wages and Youth Crime," NBER Working Papers 5983, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. John S. Heywood & Daniel Parent, 2009. "Performance Pay and the White-Black Wage Gap," Cahiers de recherche 0916, CIRPEE. [Downloadable!]
    Other versions:
  7. repec:bep:eapcon:v:5:y:2006:i:1:p:1403-1403 is not listed on IDEAS
  8. David Card & Thomas Lemieux, 1994. "Changing Wage Structure and Black-White Differentials Among Men and Women: A Longitudinal Analysis," NBER Working Papers 4755, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Kenneth Chay & David S. Lee, 1996. "Changes in Relative Wages in the 1980s: Returns to Observed and Unobserved Skills and Black-White Wage Differentials," Working Papers 751, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  10. Chad R. Wilkerson & Megan D. Williams, 2006. "Minority workers in the Tenth District: rising presence, rising challenges," Economic Review, Federal Reserve Bank of Kansas City, issue Q IV, pages 31-59. [Downloadable!]
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