The Differing Nature of Black-White Wage Inequality Across Occupational Sectors
The nature of racial wage inequality appears to differ across occupation sectors. Specifically, I find that all of the racial wage inequality in the white-collar job sector can be accounted for by controlling for the academic skill level of each worker, but almost half of the overall racial wage inequality remains in the blue-collar sector after controlling for each worker’s academic skill. Relatedly, after controlling for academic skill, I find that black workers are actually more likely to work in the white-collar sector than white workers. I show that these findings are consistent, and arguably directly implied by, both preference-based and statistical-based models of discrimination. However, omitted variable bias and measurement error also cannot be ruled out as possible explanations.
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- Moro, Andrea & Norman, Peter, 2003.
"Affirmative action in a competitive economy,"
Journal of Public Economics,
Elsevier, vol. 87(3-4), pages 567-594, March.
- Andrea Moro & Peter Norman, "undated". ""Affirmative Action in a Competitive Economy''," CARESS Working Papres 96-08, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
- Andrea Moro & Peter Norman, "undated". "Affirmative Action in a Competitive Economy," Penn CARESS Working Papers ca48ba70927f48a4e11034658, Penn Economics Department.