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Incorporating the Causes of Occupational Differences in Studies of Racial Wage Differentials

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  • Andrew M. Gill

Abstract

This study provides a basic framework for incorporating the causes of occupational differences into analyses of racial wage differentials. Separating the influences of personal characteristics, occupational choice, and hiring discrimination on occupational attainment provides measures of the contributions of each to the racial pay gap. The paper also considers the potential for bias in the wage-equation estimates arising from self selection into occupations. There are two general findings. First, correcting for self-selection increases the importance of occupational distribution in explaining racial wage differentials. Second, a proper accounting of the causes of these occupational differences yields discrimination measures that are higher than those that arise when occupational dummy variables are included in the wage equations and all the difference in occupational distribution is treated as nondiscriminatory.

Suggested Citation

  • Andrew M. Gill, 1994. "Incorporating the Causes of Occupational Differences in Studies of Racial Wage Differentials," Journal of Human Resources, University of Wisconsin Press, vol. 29(1), pages 20-41.
    • Handle: RePEc:uwp:jhriss:v:29:y:1994:i:1:p:20-41
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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. Lisa Giddings, 2003. "Continued decline for ethnic minorities in the transition?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(4), pages 621-648, December.
    3. Marlene Kim, 2013. "Race and ethnicity in the workplace," Chapters, in: Deborah M. Figart & Tonia L. Warnecke (ed.), Handbook of Research on Gender and Economic Life, chapter 14, pages 218-235, Edward Elgar Publishing.
    4. Anastasia Klimova, 2012. "Gender differences in determinants of occupational choice in Russia," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 39(9), pages 648-670, July.
    5. Velling, Johannes, 1995. "Wage discrimination and occupational segregation of foreign male workers in Germany," ZEW Discussion Papers 95-04, ZEW - Leibniz Centre for European Economic Research.
    6. Paul Gabriel & Susanne Schmitz, 2006. "The impact of gender differences in occupational attainment on the relative earnings of young workers," Applied Economics Letters, Taylor & Francis Journals, vol. 13(10), pages 615-619.
    7. Wifag Adnan & Kerim Peren Arin & Aysegul Corakci & Nicola Spagnolo, 2022. "On the heterogeneous effects of tax policy on labor market outcomes," Southern Economic Journal, John Wiley & Sons, vol. 88(3), pages 991-1036, January.
    8. David McClough & Mary Ellen Benedict, 2017. "Not All Education Is Created Equal: How Choice of Academic Major Affects the Racial Salary Gap," The American Economist, Sage Publications, vol. 62(2), pages 184-205, October.
    9. Paul E. Gabriel & Susanne Schmitz, 2014. "A longitudinal examination of racial differences in occupational distributions among prime-aged males in the United States," Economics Bulletin, AccessEcon, vol. 34(1), pages 106-114.
    10. Eric Solberg, 2004. "Occupational assignment, hiring discrimination, and the gender pay gap," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 32(1), pages 11-27, March.

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