Cycles of Wage Discrimination
AbstractUsing CPS data from 1979-2009 we examine how cyclical downturns and industry-specific demand shocks affect wage differentials between white non-Hispanic males and women, Hispanics and African-Americans. Women's and Hispanics' relative earnings are harmed by negative shocks, while the earnings disadvantage of African-Americans may drop with negative shocks. Negative shocks also appear to increase the earnings disadvantage of bad-looking workers. A theory of job search suggests two opposite-signed mechanisms that affect these wage differentials. It suggests greater absolute effects among job-movers, which is verified using the longitudinal component of the CPS.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5945.
Length: 38 pages
Date of creation: Aug 2011
Date of revision:
Publication status: published as "Wage discrimination over the business cycle" in: IZA Journal of Labor Policy, 2013 2:7
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Other versions of this item:
- E29 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Other
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-09-16 (All new papers)
- NEP-BEC-2011-09-16 (Business Economics)
- NEP-HME-2011-09-16 (Heterodox Microeconomics)
- NEP-LAB-2011-09-16 (Labour Economics)
- NEP-LMA-2011-09-16 (Labor Markets - Supply, Demand, & Wages)
- NEP-LTV-2011-09-16 (Unemployment, Inequality & Poverty)
- NEP-MAC-2011-09-16 (Macroeconomics)
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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Journal of Labor Economics,
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