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Statistical Discrimination and the Early Career Evolution of the Black-White Wage Gap

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Author Info
Oettinger, Gerald S
Abstract

This article develops and tests a simple dynamic model of statistical discrimination. The model improves on earlier static models both by allowing ex ante uncertainty about worker productivity to be resolved as on-the-job performance is observed and by generating several testable empirical implications. These predictions are tested using a sample of young men from the National Longitudinal Survey of Youth, producing mixed evidence for the model. The main empirical result is that no black-white wage gap exists at labor-force entry but that one develops as experience accumulates, mainly because blacks reap smaller gains from job mobility. Copyright 1996 by University of Chicago Press.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 14 (1996)
Issue (Month): 1 (January)
Pages: 52-78
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Handle: RePEc:ucp:jlabec:v:14:y:1996:i:1:p:52-78

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  3. Andrea Moro & Peter Norman, 2003. "Empirical Implications of Statistical Discrimination on the Returns to Measures of Skill," Annales d'Economie et de Statistique, ADRES, issue 71-72, pages 19, Juillet-D. [Downloadable!]
  4. Joshua C. Pinkston, 2006. "A Model of Asymmetric Employer Learning With Testable Implications," Working Papers 390, U.S. Bureau of Labor Statistics. [Downloadable!]
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  5. Donal O'Neill & Olive Sweetman & Dirk van de Gaer, 2000. "Estimating Counterfactual Densities: An application to Black-White Wage Differentials in the U.S," Economics, Finance and Accounting Department Working Paper Series n1040600, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth. [Downloadable!]
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  7. Nielsen, Helena Skyt & Rosholm, Michael & Smith, Nina & Husted, Leif, 2001. "Qualifications, Discrimination, or Assimilation? An Extended Framework for Analysing Immigrant Wage Gaps," IZA Discussion Papers 365, Institute for the Study of Labor (IZA). [Downloadable!]
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  8. Kerwin Kofi Charles & Jonathan Guryan, 2007. "Prejudice and The Economics of Discrimination," NBER Working Papers 13661, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. H. J. Holzer, . "Employer skill needs and labor market outcome by race and gender," Institute for Research on Poverty Discussion Papers 1087-96, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
  10. Kate Antonovics & Peter Arcidiacono & Randall Walsh, 2003. "Games and Discrimination: Lessons From the Weakest Link," University of California at San Diego, Economics Working Paper Series 2003-03, Department of Economics, UC San Diego. [Downloadable!]
  11. Marsha Courchane & David Nickerson, 1997. "Discrimination Resulting from Overage Practices," Journal of Financial Services Research, Springer, vol. 11(1), pages 133-151, February. [Downloadable!] (restricted)
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