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The Differing Nature of Black-White Wage Inequality Across Occupational Sectors

  • David Bjerk

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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File URL: http://jhr.uwpress.org/cgi/reprint/XLII/2/398
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Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 42 (2007)
Issue (Month): 2 ()
Pages:

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Handle: RePEc:uwp:jhriss:v:42:y:2007:i2:p398-434
Contact details of provider: Web page: http://jhr.uwpress.org/

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  1. Andrea Moro & Peter Norman, . "Affirmative Action in a Competitive Economy," Penn CARESS Working Papers ca48ba70927f48a4e11034658, Penn Economics Department.
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