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Separate and Unequal in the Labor Market: Human Capital and the Jim Crow Wage Gap

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  • Celeste K. Carruthers

    (Department of Economics, University of Tennessee)

  • Marianne H. Wanamaker

    (Department of Economics, University of Tennessee)

Abstract

We decompose the 1940 black-white earnings gap into that part attributable to differences in human capital and an unexplained portion that traces the upper bound of labor market discrimination. We find that differences in measurable human capital play a predominant role in determining 1940 wage and occupational status gaps. Our range of estimates for the unexplained gap, 11 to 17 log points, coincides with the higher end of the range of estimates from the post-Civil Rights era. We estimate that a counterfactual “separate but equal” school quality standard would have reduced wage inequalities by as much as 52 percent.

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  • Celeste K. Carruthers & Marianne H. Wanamaker, 2015. "Separate and Unequal in the Labor Market: Human Capital and the Jim Crow Wage Gap," Working Papers 2015-01, University of Tennessee, Department of Economics.
    • Handle: RePEc:ten:wpaper:2015-01
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    More about this item

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-

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