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Does Wealth Explain Black-White Differences In Early Employment Careers?

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  • Sílvio Rendon

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Abstract

This paper inquires on the effect of initial wealth in racial differences in early employment careers. I set up a dynamic model in which people simultaneously search for a job and accumulate wealth, and fit it to data from the National Longitudinal Survey (1979-cohort). With the recovered behavioral parameters, I perform regime changes consisting in giving blacks (i) the initial wealth distribution, and (ii) the arrival rates and wage offer distribution of whites. These counterfactual experiments show that initial wealth has a modest influence in the black-white difference in early employment careers in comparison with labor market variables.

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Bibliographic Info

Paper provided by Universidad Carlos III, Departamento de Economía in its series Economics Working Papers with number we032303.

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Date of creation: Apr 2003
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Handle: RePEc:cte:werepe:we032303

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  15. Silvio Rendón, 2002. "Job Search And Asset Accumulation Under Borrowing Constraints," Economics Working Papers we025219, Universidad Carlos III, Departamento de Economía.
  16. Coppejans, Mark & Sieg, Holger, 2005. "Kernel Estimation of Average Derivatives and Differences," Journal of Business & Economic Statistics, American Statistical Association, vol. 23, pages 211-225, April.
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  23. Michael P. Keane & Kenneth Wolpin, . "Eliminating Race Differences in School Attainment and Labor Market Success," CARESS Working Papres 97-5, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
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Cited by:
  1. Rendon, Silvio & Cuecuecha, Alfredo, 2007. "International Job Search: Mexicans In and Out of the US," IZA Discussion Papers 3219, Institute for the Study of Labor (IZA).
  2. Maury Gittleman, 2011. "Medicaid and Wealth: An Examination Using the NLSY79," Working Papers 448, U.S. Bureau of Labor Statistics.
  3. Ivan Grguric, 2005. "Moving up the income ladder? What are the obstacles: a case study of indigenous people in Latin America," Financial Theory and Practice, Institute of Public Finance, vol. 29(4), pages 361-381.

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