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Workplace Segregation in the United States: Race, Ethnicity, and Skill

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Author Info
Judith Hellerstein
David Neumark

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Abstract

We study workplace segregation in the United States using a unique matched employer-employee dataset that we have created. We first present measures of workplace segregation by race and ethnicity, using simulation methods to measure segregation beyond what would occur randomly as workers are distributed across establishments. We then assess the role of skill differentials in generating workplace segregation, as skilled workers may be more complementary with other skilled workers than with unskilled workers, and skill is often correlated with race and ethnicity. Specifically, we measure the extent of segregation by education level and quality as well as by language ability, providing informative contrasts with measures of segregation by race and ethnicity. Finally, we attempt to distinguish between segregation by skill based on general crowding of the unskilled into a narrow set of jobs versus segregation based on common language for reasons such as complementarity among workers speaking the same language. Our results consistently indicate that workplace segregation by race and ethnicity is driven in large part by skill differences across workers.

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Publisher Info
Paper provided by Public Policy Institute of California in its series PPIC Working Papers with number 2004.05.

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Length: 54 pages
Date of creation: Apr 2004
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Handle: RePEc:ppi:ppicwp:2004.05

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References listed on IDEAS
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. Kimberly Bayard & Judith Hellerstein & David Neumark & Kenneth Troske, 1999. "Why are Racial and Ethnic Wage Gaps Larger for Men than for Women? Exploring the Role of Segregation," NBER Working Papers 6997, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Silber, Jacques, 1992. "Occupational Segregation Indices in the Multidimensional Case: A Note," The Economic Record, The Economic Society of Australia, vol. 68(202), pages 276-77, September.
  3. Ihlanfeldt, Keith R & Sjoquist, David L, 1990. "Job Accessibility and Racial Differences in Youth Employment Rates," American Economic Review, American Economic Association, vol. 80(1), pages 267-76, March. [Downloadable!] (restricted)
  4. Higgs, Robert, 1977. "Firm-Specific Evidence on Racial Wage Differentials and Workforce Segregation," American Economic Review, American Economic Association, vol. 67(2), pages 236-45, March. [Downloadable!] (restricted)
  5. Roland G. Fryer & Steven D. Levitt, 2003. "The Causes and Consequences of Distinctively Black Names," NBER Working Papers 9938, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. John Haltiwanger & C J Krizan & Lucia Foster, 1998. "Aggregate Productivity Growth: Lessons From Microeconomic Evidence," Working Papers 98-12, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
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  7. Judith K. Hellerstein & David Neumark, 2002. "Ethnicity, Language, and Workplace Segregation: Evidence from a New Matched Employer-Employee Data Set," NBER Working Papers 9037, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Antonio Cabrales & Antoni Calvó, 2002. "Social Preferences and Skill Segregation," Economics Working Papers 629, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
  9. Welch, Finis, 1990. "The Employment of Black Men," Journal of Labor Economics, University of Chicago Press, vol. 8(1), pages S26-74, January. [Downloadable!] (restricted)
  10. Kremer, M & Maskin, E, 1996. "Wage Inequality and Segregation by Skill," Working papers 96-23, Massachusetts Institute of Technology (MIT), Department of Economics.
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  11. John J. Donohue III & James Heckman, 1991. "Continuous Versus Episodic Change: The Impact of Civil Rights Policy on the Economic Status of Blacks," NBER Working Papers 3894, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  12. Marianne Bertrand & Sendhil Mullainathan, 2004. "Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination," American Economic Review, American Economic Association, vol. 94(4), pages 991-1013, September. [Downloadable!]
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  13. O'Neill, June, 1990. "The Role of Human Capital in Earnings Differences between Black and White Men," Journal of Economic Perspectives, American Economic Association, vol. 4(4), pages 25-45, Fall. [Downloadable!] (restricted)
  14. 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. [Downloadable!]
  15. Gilles Saint Paul, 1999. "On the Distribution of Income and Worker Assignment under Intra-firm Spillovers, with an Application to Ideas and Networks," Economics Working Papers 417, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
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  16. Heckman, James J, 1998. "Detecting Discrimination," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 101-16, Spring. [Downloadable!] (restricted)
  17. David M. Cutler & Edward L. Glaeser & Jacob L. Vigdor, 1999. "The Rise and Decline of the American Ghetto," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 455-506, June. [Downloadable!] (restricted)
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  18. Kenneth R Troske & William J Carrington, 1996. "Sex Segregation in U.S. Manufacturing," Working Papers 96-4, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
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  19. Michael Kremer & Eric Maskin, 1996. "Wage Inequality and Segregation," Harvard Institute of Economic Research Working Papers 1777, Harvard - Institute of Economic Research.
  20. Federico Echenique & Roland G. Fryer Jr., 2005. "On the Measurement of Segregation," Labor and Demography 0503006, EconWPA. [Downloadable!]
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  21. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2005. "Trends in U.S. Wage Inequality: Re-Assessing the Revisionists," NBER Working Papers 11627, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  22. Darity, William A, Jr & Mason, Patrick L, 1998. "Evidence on Discrimination in Employment: Codes of Color, Codes of Gender," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 63-90, Spring. [Downloadable!] (restricted)
  23. Charles Brown & James L. Medoff, 1989. "The Employer Size-Wage Effect," NBER Working Papers 2870, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  24. Neal, Derek A & Johnson, William R, 1996. "The Role of Premarket Factors in Black-White Wage Differences," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 869-95, October. [Downloadable!] (restricted)
    Other versions:
  25. David Card & John E. DiNardo, 2002. "Skill-Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles," Journal of Labor Economics, University of Chicago Press, vol. 20(4), pages 733-783, October. [Downloadable!]
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  26. Carrington, William J & Troske, Kenneth R, 1997. "On Measuring Segregation in Samples with Small Units," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(4), pages 402-09, October.
  27. H. J. Holzer, . "Why do small establishments hire fewer blacks than large ones," Institute for Research on Poverty Discussion Papers 1119-97, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
  28. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June. [Downloadable!] (restricted)
  29. Hirsch, Barry T. & Macpherson, David A., 2003. "Wages, Sorting on Skill, and the Racial Composition of Jobs," IZA Discussion Papers 741, Institute for the Study of Labor (IZA). [Downloadable!]
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  30. 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 Elsevier. [Downloadable!] (restricted)
    Other versions:
Full references

Cited by:
(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. Åslund, Olof & Nordström Skans, Oskar, 2007. "How to Measure Segregation Conditional on the Distribution of Covariates," Working Paper Series 2007:27, Uppsala University, Department of Economics. [Downloadable!]
    Other versions:
  2. Rebecca Allen & Simon Burgess & Frank Windmeijer, 2009. "More Reliable Inference for Segregation Indices," The Centre for Market and Public Organisation 09/216, Department of Economics, University of Bristol, UK. [Downloadable!]
  3. Åslund, Olof & Nordström Skans, Oskar, 2005. "Will I see you at work? Ethnic workplace segregation in Sweden 1985–2002," Working Paper Series 2005:24, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  4. Hipólito Simón & Esteban Sanromá & Raúl Ramos, 2008. "Labour segregation and immigrant and native-born wage distributions in Spain: an analysis using matched employer–employee data," Spanish Economic Review, Springer, vol. 10(2), pages 135-168, June. [Downloadable!] (restricted)
  5. 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)
    Other versions:
  6. Paul Frijters & Michael A. Shields & Stephen Wheatley Price & Nikolaos Theodoropoulos, 2006. "Testing for Employee Discrimination in Britain using Matched Employer-Employee Data," University of Cyprus Working Papers in Economics 8-2006, University of Cyprus Department of Economics. [Downloadable!]
  7. 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:
  8. Judith K. Hellerstein & Melissa McInerney & David Neumark, 2009. "Spatial Mismatch, Immigrant Networks, and Hispanic Employment in the United States," NBER Working Papers 15398, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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