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Wages, Sorting on Skill, and the Racial Composition of Jobs

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Author Info
Barry T. Hirsch (Trinity University and IZA, Bonn)
David A. Macpherson (Florida State University)

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Abstract

Wages for black and white workers are substantially lower in occupations with a high density of black employees, following standard controls. Such correlations can exist absent discrimination or as a result of discrimination. In wage level equations, partial correlations fall sharply after controlling for occupational skills. Longitudinal estimates accounting for worker heterogeneity indicate little wage change associated with changes in racial composition. Results support a "quality sorting" rather than discrimination explanation, with racial density serving as an index of unmeasured skills. Discrimination reflected in racial wage gaps occurs within occupations or across occupations in a manner uncorrelated with racial composition.

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

Volume (Year): 22 (2004)
Issue (Month): 1 (January)
Pages: 189-210
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Handle: RePEc:ucp:jlabec:v:22:y:2004:i:1:p:189-210

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  3. Cook, Michael D & Evans, William N, 2000. "Families or Schools? Explaining the Convergence in White and Black Academic Performance," Journal of Labor Economics, University of Chicago Press, vol. 18(4), pages 729-54, October. [Downloadable!] (restricted)
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  7. Mason, Patrick L, 1999. "Male Interracial Wage Differentials: Competing Explanations," Cambridge Journal of Economics, Oxford University Press, vol. 23(3), pages 261-99, May.
  8. Hirsch, B.T. & Macpherson, D.A., 1994. "Wages, Racial Composition, and Quality Sorting in Labor Markets," Working Papers 1994_01_01, Department of Economics, Florida State University.
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  9. Gibbons, Robert & Katz, Lawrence F, 1992. "Does Unmeasured Ability Explain Inter-industry Wage Differentials?," Review of Economic Studies, Blackwell Publishing, vol. 59(3), pages 515-35, July. [Downloadable!] (restricted)
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  15. Carrington, William J & Troske, Kenneth R, 1998. "Interfirm Segregation and the Black/White Wage Gap," Journal of Labor Economics, University of Chicago Press, vol. 16(2), pages 231-60, April. [Downloadable!] (restricted)
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  19. Darity, William A, Jr & Mason, Patrick L, 1998. "Evidence on Discrimination in Employment: Codes of Color, Codes of Gender," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 63-90, Spring. [Downloadable!] (restricted)
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Hipólito Simón & Esteban Sanromá & Raúl Ramos, 2008. "Labour segregation and immigrant and native-born wage distributions in Spain: an analysis using matched employer–employee data," Spanish Economic Review, Springer, vol. 10(2), pages 135-168, June. [Downloadable!] (restricted)
  2. Judith Hellerstein & David Neumark, 2007. "Workplace Segregation in the United States: Race, Ethnicity, and Skill," Working Papers 07-02, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
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  3. Paul Frijters & Michael A. Shields & Nikolaos Theodoropoulos & Stephen Wheatley Price, 2004. "Testing For Employee Discrimination Using Matched Employer-Employee Data: Theory And Evidence," Department of Economics - Working Papers Series 915, The University of Melbourne. [Downloadable!]
    Other versions:
  4. Romain Aeberhardt & Julien Pouget, 2007. "National Origin Wage Differentials in France: Evidence from Matched Employer-Employee Data," IZA Discussion Papers 2779, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
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