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Labor Earnings, Discrimination, and the Racial Composition of Jobs

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  • Barry T. Hirsch
  • Edward J. Schumacher

Abstract

This paper examines the effect of the racial composition of labor markets on wage rates and the racial wage gap. The wage rates of white as well as black workers are significantly lower in industry-occupation-regional groups with high densities of black workers, while the racial wage gap does not vary systematically with respect to racial density. Interpretation of racial gap estimates can be sensitive to inclusion of a racial density variable, particularly in sparse specifications. An explanation for the wage-density relationship cannot be established, but results are most consistent with a quality sorting explanation and, to a lesser extent, the crowding hypothesis.

Suggested Citation

  • Barry T. Hirsch & Edward J. Schumacher, 1992. "Labor Earnings, Discrimination, and the Racial Composition of Jobs," Journal of Human Resources, University of Wisconsin Press, vol. 27(4), pages 602-628.
    • Handle: RePEc:uwp:jhriss:v:27:y:1992:i:4:p:602-628
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    Citations

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    Cited by:

    1. Rodney Fort & Andrew Gill, 2000. "Race and Ethnicity Assessment in Baseball Card Markets," Journal of Sports Economics, , vol. 1(1), pages 21-38, February.
    2. Mason, Patrick L., 1997. "Race, culture, and skill: interracial wage differentials among African Americans, Latinos, and whites," MPRA Paper 11329, University Library of Munich, Germany.
    3. Heinze, Anja, 2009. "Earnings of Men and Women in Firms with a Female Dominated Workforce: What Drives the Impact of Sex Segregation on Wages?," ZEW Discussion Papers 09-012, ZEW - Leibniz Centre for European Economic Research.
    4. Neuman, Shoshana & Oaxaca, Ronald L, 2004. "Wage Differentials in the 1990s in Israel: Endowments, Discrimination and Selectivity," CEPR Discussion Papers 4709, C.E.P.R. Discussion Papers.
    5. B. T. Hirsch & D. A. Macpherson, "undated". "Wages, racial composition, and quality sorting in labor markets," Institute for Research on Poverty Discussion Papers 1038-94, University of Wisconsin Institute for Research on Poverty.
    6. Marrero,Gustavo Alberto & Rodríguez,Juan Gabriel & Van Der Weide,Roy, 2021. "Does Race and Gender Inequality Impact Income Growth ?," Policy Research Working Paper Series 9865, The World Bank.
    7. Asa Rosen, 2003. "Search, Bargaining, and Employer Discrimination," Journal of Labor Economics, University of Chicago Press, vol. 21(4), pages 807-830, October.
    8. 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.
    9. John Forth & Nikolaos Theodoropoulos & Alex Bryson, 2023. "The role of the workplace in ethnic wage differentials," British Journal of Industrial Relations, London School of Economics, vol. 61(2), pages 259-290, June.
    10. Malveaux, Julianne, 1999. "Women of color in the labor market," The Quarterly Review of Economics and Finance, Elsevier, vol. 39(5), pages 663-678.
    11. Paul Frijters & Michael A. Shields & Stephen Wheatley Price & Nikolaos Theodoropoulos, 2006. "Testing for Employee Discrimination in Britain using Matched Employer-Employee Data," University of Cyprus Working Papers in Economics 8-2006, University of Cyprus Department of Economics.
    12. Edward J. Schumacher & Marjorie L. Baldwin, 2000. "The American with Disabilities Act and the Labor Market Experience of Workers with Disabilities: Evidence from the SIPP," Working Papers 0013, East Carolina University, Department of Economics.
    13. Boris Heizmann & Anne Busch-Heizmann & Elke Holst, 2017. "Immigrant Occupational Composition and the Earnings of Immigrants and Natives in Germany: Sorting or Devaluation?," International Migration Review, Wiley Blackwell, vol. 51(2), pages 475-505, June.
    14. Don Mar, 2011. "Explaining Regional Differences in Black Earnings Discrimination among Full-time Working Men," The Review of Black Political Economy, Springer;National Economic Association, vol. 38(3), pages 243-251, September.
    15. Philip N. Cohen & Matt L. Huffman, 2007. "Black Under-representation in Management across U.S. Labor Markets," The ANNALS of the American Academy of Political and Social Science, , vol. 609(1), pages 181-199, January.
    16. Jane Lapidus & Deborah Figart, 1998. "Remedying "Unfair Acts": U.S. Pay Equity by Race and Gender," Feminist Economics, Taylor & Francis Journals, vol. 4(3), pages 7-28.
    17. Sattinger, Michael, 1996. "Search and discrimination," Labour Economics, Elsevier, vol. 3(2), pages 143-167, September.

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