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The Effect on Black-White Wage Differences of Differences in the Quantity and Quality of Education

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  • Nan L. Maxwell

Abstract

Using data from the National Longitudinal Survey of Youth for the years 1979–88, the author examines the extent to which black-white differences in educational attainment, educational quality, and unmeasured individual ability can explain black-white wage differences. An analysis that corrects for both selectivity and ability biases inherent in estimating the education-wage relationship shows that the main source of the black-white wage differential is the racial difference in the quality rather than quantity of schooling. In fact, the author concludes, closing the racial gap in the basic skills learned in school could reduce the wage differential by two-thirds.

Suggested Citation

  • Nan L. Maxwell, 1994. "The Effect on Black-White Wage Differences of Differences in the Quantity and Quality of Education," ILR Review, Cornell University, ILR School, vol. 47(2), pages 249-264, January.
  • Handle: RePEc:sae:ilrrev:v:47:y:1994:i:2:p:249-264
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    References listed on IDEAS

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    1. Lawrence Katz & Alan Krueger, 1992. "The Effect of the Minimum Wage on the Fast Food Industry," Working Papers 678, Princeton University, Department of Economics, Industrial Relations Section..
    2. David Card & W. Craig Riddell, 1993. "A Comparative Analysis of Unemployment in Canada and the United States," NBER Chapters,in: Small Differences That Matter: Labor Markets and Income Maintenance in Canada and the United States, pages 149-190 National Bureau of Economic Research, Inc.
    3. Brown, Charles & Gilroy, Curtis & Kohen, Andrew, 1982. "The Effect of the Minimum Wage on Employment and Unemployment," Journal of Economic Literature, American Economic Association, pages 487-528.
    4. Richard B. Freeman & Wayne B. Gray & Casey Ichniowski, 1981. "Low-Cost Student Labor: The Use and Effects of the Subminimum Wage Provisions for Full-time Students," NBER Working Papers 0765, National Bureau of Economic Research, Inc.
    5. Lawrence F. Katz & Alan B. Krueger, 1992. "The Effect of the Minimum Wage on the Fast-Food Industry," ILR Review, Cornell University, ILR School, pages 6-21.
    6. Jean Baldwin Grossman, 1983. "The Impact of the Minimum Wage on Other Wages," Journal of Human Resources, University of Wisconsin Press, vol. 18(3), pages 359-378.
    7. repec:fth:prinin:298 is not listed on IDEAS
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    Citations

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    Cited by:

    1. Heather Antecol & Kelly Bedard, 2004. "The Racial Wage Gap: The Importance of Labor Force Attachment Differences across Black, Mexican, and White Men," Journal of Human Resources, University of Wisconsin Press, vol. 39(2).
    2. Elton Mykerezi & Bradford F. Mills, 2008. "The Wage Earnings Impact of Historically Black Colleges and Universities," Southern Economic Journal, Southern Economic Association, vol. 75(1), pages 173-187, July.
    3. Stijn Broecke & Glenda Quintini & Marieke Vandeweyer, 2018. "Wage Inequality and Cognitive Skills: Re-Opening the Debate," NBER Chapters,in: Education, Skills, and Technical Change, and Future U.S. GDP Growth National Bureau of Economic Research, Inc.
    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, pages 69-88.
    5. Li Gan & Guan Gong, 2004. "Mortality Risk and Educational Attainment of Black and White Men," NBER Working Papers 10381, National Bureau of Economic Research, Inc.
    6. Antecol, Heather & Bedard, Kelly, 2002. "The Racial Wage Gap: The Importance of Labor Force Attachment Differences," University of California at Santa Barbara, Economics Working Paper Series qt7cb6q4m9, Department of Economics, UC Santa Barbara.
    7. Melissa Osborne & Herbert Gintis & Samuel Bowles, 2001. "The Determinants of Earnings: A Behavioral Approach," Journal of Economic Literature, American Economic Association, pages 1137-1176.
    8. Babcock, Phillip, 2008. "From Ties to Gains? Evidence on Connectedness and Human Capital Acquisition," University of California at Santa Barbara, Economics Working Paper Series qt6fw1m0x0, Department of Economics, UC Santa Barbara.
    9. Srikanth Ramamurthy & Norman Sedgley, 2015. "Human Capital Choice and the Wage Gap: The Role of Worklife Expectancy and Statistical Discrimination," Journal of Labor Research, Springer, vol. 36(2), pages 175-187, June.
    10. Patricia E. Gaynor & Garey C. Durden, 1997. "The Cost of Being Nonwhite and the Added Cost of Being Female in The South and Southwest," The Review of Regional Studies, Southern Regional Science Association, vol. 27(2), pages 195-209, Fall.
    11. repec:eee:labchp:v:3:y:1999:i:pc:p:3143-3259 is not listed on IDEAS
    12. 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 869-895, October.

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