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On the Decomposition of Wage Differentials

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  • Cotton, Jeremiah

Abstract

The often-used method for decomposing wage differentials into human capital and discrimination components is reformulated so that both t he disadvantage, or "cost," discrimination it imposes on a black or minority wage earner and the advantage, or "benefit," it bestows on a white or majority wage earner can be estimated. Copyright 1988 by MIT Press.

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  • Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-243, May.
  • Handle: RePEc:tpr:restat:v:70:y:1988:i:2:p:236-43
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