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Education and Labor-Market Discrimination

Author

Listed:
  • Kevin Lang

    (Department of Economics, Boston University)

  • Michael Manove

    (Department of Economics, Boston University)

Abstract

We propose a model that combines statistical discrimination and educational sorting that explains why blacks get more education than do whites of similar cognitive ability. Our model explains the di¤erence between blacks and whites in the relations between education and AFQT and between wages and education. It cannot easily explain why, conditional only on AFQT, blacks earn no more than do whites. It does, however, suggest, that when comparing the earnings of blacks and whites, one should control for both AFQT and education in which case a substantial black-white wage di¤erential reemerges. We explore and reject the hypothesis that di¤erences in school quality between blacks and whites explain the wage and education di¤erentials. Our ?ndings support the view that some of the black-white wage di¤erential re?ects the operation of the labor market.

Suggested Citation

  • Kevin Lang & Michael Manove, 2006. "Education and Labor-Market Discrimination," Boston University - Department of Economics - Working Papers Series WP2006-008, Boston University - Department of Economics.
  • Handle: RePEc:bos:wpaper:wp2006-008
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    References listed on IDEAS

    as
    1. Joseph G. Altonji & Charles R. Pierret, 2001. "Employer Learning and Statistical Discrimination," The Quarterly Journal of Economics, Oxford University Press, vol. 116(1), pages 313-350.
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    6. Rodgers, William M, III & Spriggs, William E, 1996. "The Effect of Federal Contractor Status on Racial Differences in Establishment-Level Employment Shares: 1979-1992," American Economic Review, American Economic Association, vol. 86(2), pages 290-293, May.
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    JEL classification:

    • J7 - Labor and Demographic Economics - - Labor Discrimination

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