Are Wage Premiums for Black Women Illusory? A Critical Examination
AbstractRecent evidence documents a wage premium for black women (e.g., Fryer, 2011). However, we find no strong evidence of a premium after accounting for selection into the labor market; years of education attained, conditional on ability; and local cost of living. We find modest evidence of heterogeneous effects by education-small premiums for highly educated black women and penalties for black women with less education. Controlling for actual experience yields estimates at the low end of previously published premiums, but the possibility of discrimination in hiring and firing implies that controls for actual experience may be inappropriate.
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Bibliographic InfoPaper provided by Department of Economics, College of William and Mary in its series Working Papers with number 120.
Length: 37 pages
Date of creation: 09 Apr 2012
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