The Measured Black-White Wage Gap Among Women is Too Small
AbstractTaken as a whole, the literature on black-white wage inequality suggests that racial gaps in potential wages are much larger among men than women, and further that one can accurately assess black-white gaps in potential wages among women without accounting for black-white differences in patterns of female labor supply. This paper challenges both pieces of this conventional wisdom. I provide several estimates of the black-white gap in potential wages for the year 1990 using data from the National Longitudinal Survey of Youth (NLSY), a panel data set that includes persons born between 1957 and 1964. I exploit data on wages and income sources for years before and after 1990 to develop imputation methods that allow me to adjust measures of the black-white wage gap among women for racial differences in selection patterns. Among young adult employed women in 1990, the Census, Current Population Surveys, and NLSY data yield median log wage gaps of -.11, -16, and -.18 respectively. Based on several different imputation procedures, I estimate that the median black-white gap in log potential wages among women in the NLSY is approximately -.25.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9133.
Date of creation: Aug 2002
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Other versions of this item:
- Derek Neal, 2004. "The Measured Black-White Wage Gap among Women Is Too Small," Journal of Political Economy, University of Chicago Press, vol. 112(S1), pages S1-S28, February.
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- J7 - Labor and Demographic Economics - - Labor Discrimination
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.:
- Neal, Derek A & Johnson, William R, 1996.
"The Role of Premarket Factors in Black-White Wage Differences,"
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University of Chicago Press, vol. 104(5), pages 869-95, October.
- 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.
- Altonji, Joseph G. & Blank, Rebecca M., 1999.
"Race and gender in the labor market,"
Handbook of Labor Economics,
in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 48, pages 3143-3259
- Kimberly Bayard & Judith Hellerstein & David Neumark & Kenneth R. Troske, 1999. "Why Are Racial And Ethnic Wage Gaps Larger For Men Than For Women? Exploring The Role Of Segregation Using The New Worker-Establishment Characteristics Database," Labor and Demography 9902002, EconWPA.
- Derek Neal, 2001. "The Economics of Family Structure," NBER Working Papers 8519, National Bureau of Economic Research, Inc.
- Smith, James P & Welch, Finis R, 1989. "Black Economic Progress after Myrdal," Journal of Economic Literature, American Economic Association, vol. 27(2), pages 519-64, June.
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