Estimating Counterfactual Densities: An application to Black-White Wage Differentials in the U.S

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Estimating Counterfactual Densities: An application to Black-White Wage Differentials in the U.S

Author Info

Donal O'Neill () (Economics, National University of Ireland, Maynooth, Ireland)
Olive Sweetman () (Economics, National University of Ireland, Maynooth, Ireland)
Dirk van de Gaer () (Economics, University of Ghent, Belgium)

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Abstract

In this paper we use a semi-parmaetric procedure developed by DiNardo et al(1996),to examine the distribution of the racial wage gap in the U.S and to examine the extent to which forces underlying this wage gap vary throughout the distribution. In carrying out our analyses, we focus on recent work by Neal and Johnson who argue that one test score explains much of the average racial wage gap for men. Our resutls show that the wage differential varies significantly throughout the distribution Furthermore Neal and Johnson's conlcusion appears to be driven by forces working at the upper end of the distribution.

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Publisher Info
Paper provided by Department of Economics, Finance and Accounting, National University of Ireland - Maynooth in its series Economics, Finance and Accounting Department Working Paper Series with number n1040600.

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Length: 17 pages
Date of creation: Jun 2000
Date of revision:
Handle: RePEc:may:mayecw:n1040600

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References listed on IDEAS
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Other versions:
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Derek A. Neal & William R. Johnson, 1995. "The Role of Pre-Market Factors in Black-White Wage Differences," NBER Working Papers 5124, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Other versions:
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Other versions:
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Other versions:
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Other versions:
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Lundberg, Shelly J & Startz, Richard, 1983. "Private Discrimination and Social Intervention in Competitive Labor Markets," American Economic Review, American Economic Association, vol. 73(3), pages 340-47, June. [Downloadable!] (restricted)
Other versions:
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Dennis J. Aigner & Glen G. Cain, 1977. "Statistical theories of discrimination in labor markets," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 30(2), pages 175-187, January.
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Other versions:
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