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Ethnicity, Language, and Workplace Segregation: Evidence from a New Matched Employer-Employee Data Set

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Author Info
Judith K. Hellerstein
David Neumark

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Abstract

We describe the construction and assessment of a new matched employer-employee data set (the Decennial Employer-Employee Dataset, or DEED) that we have undertaken as a part of a broad research agenda to study segregation in the U.S. labor market. In this paper we examine the role of segregation by Hispanic ethnicity and language proficiency, contributing new, previously unavailable descriptive information on segregation along these lines, and evidence on the wage premia or penalties associated with this segregation. The DEED is much larger and more representative across regional and industry dimensions than previous matched data sets for the United States, and improvements along both of these dimensions are essential to isolating the importance of segregation by language and ethnicity in the workplace. Our empirical results reveal considerable segregation by Hispanic ethnicity and by English language proficiency. We find that Hispanic workers, but not white workers, suffer wage penalties from employment in a workplace with a large share of Hispanic workers, and even more so a large share of Hispanic workers with poor English language proficiency. In addition, we find that segregation of Hispanic workers among other Hispanics with similar English language proficiency does not reduce the penalties associated with poor own language skills.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9037.

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Date of creation: Jul 2002
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Handle: RePEc:nbr:nberwo:9037

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  1. Lang, Kevin, 1986. "A Language Theory of Discrimination," The Quarterly Journal of Economics, MIT Press, vol. 101(2), pages 363-82, May. [Downloadable!] (restricted)
  2. Darren Lubotsky, 2000. "Chutes or Ladders? A Longitudinal Analysis of Immigrant Earnings," Working Papers 824, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  3. Jacques Mairesse & Nathalie Greenan, 1999. "Using Employee Level Data in a Firm Level Econometric Study," NBER Working Papers 7028, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Lucia Foster & John Haltiwanger & C.J. Krizan, 1998. "Aggregate Productivity Growth: Lessons from Microeconomic Evidence," NBER Working Papers 6803, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Edward P. Lazear, 1999. "Culture and Language," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S95-S126, December. [Downloadable!] (restricted)
  6. repec:fth:prinin:445 is not listed on IDEAS
  7. Judith K. Hellerstein & David Neumark & Kenneth R. Troske, 1997. "Market Forces and Sex Discrimination," NBER Working Papers 6321, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Kenneth R Troske, 1995. "The Worker-Establishment Characteristics Database," Working Papers 95-10, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
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  9. Dustmann, Christian & van Soest, Arthur, 1998. "Language and the Earnings of Immigrants," CEPR Discussion Papers 2012, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  10. Iain Cockburn & Zvi Griliches, 1987. "Industry Effects and Appropriability Measures in the Stock Markets Valuation of R&D and Patents," NBER Working Papers 2465, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  11. John Haltiwanger & Marilyn E. Manser & Robert Topel, 1998. "Labor Statistics Measurement Issues," NBER Books, National Bureau of Economic Research, Inc, number halt98-1.
  12. Hellerstein, Judith K & Neumark, David, 1999. "Sex, Wages, and Productivity: An Empirical Analysis of Israeli Firm-Level Data," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(1), pages 95-123, February.
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  14. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December. [Downloadable!] (restricted)
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  16. Erica L. Groshen, 1987. "The structure of the female/male wage differential: is it who you are, what you do, or where you work?," Working Paper 8708, Federal Reserve Bank of Cleveland. [Downloadable!]
  17. Barbara R. Bergmann, 1974. "Occupational Segregation, Wages and Profits When Employers Discriminate by Race or Sex," Eastern Economic Journal, Eastern Economic Association, vol. 1(2), pages 103-110, April. [Downloadable!]
  18. Hellerstein, Judith K & Neumark, David & Troske, Kenneth R, 1999. "Wages, Productivity, and Worker Characteristics: Evidence from Plant-Level Production Functions and Wage Equations," Journal of Labor Economics, University of Chicago Press, vol. 17(3), pages 409-46, July. [Downloadable!] (restricted)
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(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. 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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  2. Judith Hellerstein & David Neumark, 2005. "Using Matched Employer-Employee Data to Study Labor Market Discrimination," IZA Discussion Papers 1555, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Judith Hellerstein & David Neumark & Melissa McInerney, 2007. "Changes in Workplace Segregation in the United States between 1990 and 2000: Evidence from Matched Employer-Employee Data," NBER Working Papers 13080, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Judith K. Hellerstein & David Neumark, 2004. "Production Function and Wage Equation Estimation with Heterogeneous Labor: Evidence from a New Matched Employer-Employee Data Set," NBER Working Papers 10325, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Juan Ignacio Palacio & Hipólito J. Simón, . "Segregación laboral y diferencias salariales por sexo en España," Studies on the Spanish Economy 151, FEDEA. [Downloadable!]
  6. 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:
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