Promotions and Race: An Analysis of Wage Returns and Job Satisfaction

Using a nationally representative sample of workers in the United States, we find evidence to suggest the wage returns to promotions for black males are about 48 per cent of the wage returns that white males earn. As black males earn, on average, significantly less than white males, the gap in the wage returns to promotions creates a larger impact on the absolute returns. Despite the racial gap in the monetary reward to a promotion, we do not find evidence to suggest that black males are less satisfied with their job following a job promotion compared with white males.