Racial Wage Gaps and test Score Differences: Incentives vs. Pre-Market Factors
AbstractWe use a simple model of statistical discrimination to empirically disentangle two different sources of racial wage inequality: differences in the distribution of pre-market factors that affect human capital, and differences in incentives to acquire human capital when young. We show how the equilibrium restrictions from the model help us identify such factors. We estimate the parameters of the model using NLSY data on wage, education, and AFQT test scores.
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Bibliographic InfoPaper provided by Society for Economic Dynamics in its series 2004 Meeting Papers with number 248.
Date of creation: 2004
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Postal: Society for Economic Dynamics Christian Zimmermann Economic Research Federal Reserve Bank of St. Louis PO Box 442 St. Louis MO 63166-0442 USA
Web page: http://www.EconomicDynamics.org/society.htm
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Statistical Discrimination; Wage inequality;
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- J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
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