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Male Interracial Wage Differentials: Competing Explanations

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  • Mason, Patrick L

Abstract

Persistent interracial wage differentials present a challenge for neoclassical models of discrimination, which claim that long-rung competition is not consistent with persistent discrimination. This study provides an empirical examination of the missing variable and job competition models of interracial wage inequality. The results argue strongly against the missing variables approach and strongly in favor of the job competition model. Specifically, this study finds that about one-half of the male African American-white and Latino-white interracial wage differentials are due to market discrimination against African Americans and Latinos. In addition, the positive and significant coefficients on the race-gender employment-density variables strongly affirm the job competition model's contention that access to white (especially) male-dominated jobs increases an individual's wage rate--regardless of race. Racial job segregation, then, is an important explanatory variable for racial wage discrimination. Copyright 1999 by Oxford University Press.

Suggested Citation

  • Mason, Patrick L, 1999. "Male Interracial Wage Differentials: Competing Explanations," Cambridge Journal of Economics, Oxford University Press, vol. 23(3), pages 261-299, May.
  • Handle: RePEc:oup:cambje:v:23:y:1999:i:3:p:261-99
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    Cited by:

    1. Mohammad Ashraf, 2007. "Factors Affecting Female Employment In Male-Dominated Occupations: Evidence From The 1990 And 2000 Census Data," Contemporary Economic Policy, Western Economic Association International, vol. 25(1), pages 119-130, January.
    2. Barry T. Hirsch & David A. Macpherson, 2004. "Wages, Sorting on Skill, and the Racial Composition of Jobs," Journal of Labor Economics, University of Chicago Press, vol. 22(1), pages 189-210, January.
    3. Günseli Berik & Yana van der Meulen Rodgers & Joseph E. Zveglich, Jr., 2002. "Does Trade Promote Gender Wage Equity? Evidence from East Asia," SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. 2002-14, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    4. William Rodgers & John Holmes, 2004. "New estimates of within occupation African American-white wage gaps," The Review of Black Political Economy, Springer;National Economic Association, vol. 31(4), pages 69-88, June.
    5. Mason, Patrick L., 2007. "Driving while black: do police pass the test?," MPRA Paper 11328, University Library of Munich, Germany.
    6. Patrick Mason, 2014. "Immigration and African American Wages and Employment: Critically Appraising the Empirical Evidence," The Review of Black Political Economy, Springer;National Economic Association, vol. 41(3), pages 271-297, September.
    7. Cooper, Peter, 2006. "Competition, Learning and Persistence in the Effects of Unmeritocratic Hiring Decisions," Working Papers 06-02.2, University of Sydney, School of Economics.
    8. Ajwad, Mohamed Ihsan & Kurukulasuriya, Pradeep, 2002. "Ethnic and gender wagedisparities in Sri Lanka," Policy Research Working Paper Series 2859, The World Bank.
    9. Patrick Bayer & Kerwin Kofi Charles, 2016. "Divergent Paths: Structural Change, Economic Rank, and the Evolution of Black-White Earnings Differences, 1940-2014," NBER Working Papers 22797, National Bureau of Economic Research, Inc.
    10. Niki Dickerson Lockette & William E. Spriggs, 2016. "Wage Dynamics and Racial and Ethnic Occupational Segregation Among Less-Educated Men in Metropolitan Labor Markets," The Review of Black Political Economy, Springer;National Economic Association, vol. 43(1), pages 35-56, March.
    11. João R. Faria & Paulo R. A. Loureiro & Franklin G. Mixon & Adolfo Sachsida, 2016. "Minority Faculty Hiring Power in Academe: an Economic Model," The Review of Black Political Economy, Springer;National Economic Association, vol. 43(3), pages 273-288, December.
    12. Andrew Trigg, 2002. "Using Micro Data to Test the Divergence between Prices and Labour Values," International Review of Applied Economics, Taylor & Francis Journals, vol. 16(2), pages 169-186.
    13. Manuel Carvajal, 2006. "Economic grounds for affirmative action: The evidence on architects and engineers in South Florida," Review of Social Economy, Taylor & Francis Journals, vol. 64(4), pages 515-538.
    14. Price, Gregory N. & Darity Jr., William A. & Headen Jr., Alvin E., 2008. "Does the stigma of slavery explain the maltreatment of blacks by whites: The case of lynchings," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(1), pages 167-193, February.

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