Racial Labor Market Gaps: The Role of Abilities and Schooling Choices
This paper studies the relationship between abilities, schooling choices, and black-white differentials in labor market outcomes. The analysis is based on a model of endogenous schooling choices. Agents’ schooling decisions are based on expected future earnings, family background, and unobserved abilities. Earnings are also determined by unobserved abilities. The analysis distinguishes unobserved abilities from observed test scores. The model is implemented using data from the NLSY79. The results indicate that, even after controlling for abilities, there exist significant racial labor market gaps. They also suggest that the standard practice of equating observed test scores may overcompensate for differentials in ability.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Card, David, 2001.
"Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems,"
Econometric Society, vol. 69(5), pages 1127-60, September.
- David Card, 2000. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," NBER Working Papers 7769, National Bureau of Economic Research, Inc.
- Carneiro, Pedro & Heckman, James J. & Masterov, Dimitriy V., 2005.
"Labor Market Discrimination and Racial Differences in Premarket Factors,"
IZA Discussion Papers
1453, Institute for the Study of Labor (IZA).
- Carneiro, Pedro & Heckman, James J & Masterov, Dimitriy V, 2005. "Labor Market Discrimination and Racial Differences in Premarket Factors," Journal of Law and Economics, University of Chicago Press, vol. 48(1), pages 1-39, April.
- Carneiro, Pedro & Heckman, James & Masterov, Dimitriy, 2004. "Labor market discrimination and racial differences in premarket factors," Working Paper Series 2005:3, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Pedro Carneiro & James J. Heckman & Dimitriy V. Masterov, 2003. "Labor Market Discrimination and Racial Differences in Premarket Factors," NBER Working Papers 10068, National Bureau of Economic Research, Inc.
- Bound, John & Freeman, Richard B, 1992.
"What Went Wrong? The Erosion of Relative Earnings and Employment among Young Black Men in the 1980s,"
The Quarterly Journal of Economics,
MIT Press, vol. 107(1), pages 201-32, February.
- John Bound & Richard B. Freeman, 1991. "What Went Wrong? The Erosion of Relative Earnings and Employment Among Young Black Men in the 1980s," NBER Working Papers 3778, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:uwp:jhriss:v:43:y:2008:i4:p919-971. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.