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The Costs of Employment Segregation: Evidence from the Federal Government under Wilson

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  • Aneja, Abhay
  • Xu, Guo

Abstract

We link personnel records of the federal civil service to census data for 1907-1921 to study the segregation of the civil service by race under President Woodrow Wilson. Using a difference-indifferences design to compare the black-white wage gap around Wilson’s presidential transition, we find that the introduction of employment segregation increased the black wage penalty by 7 percentage points. This gap increases over time and is driven by a reallocation of already-serving black civil servants to lower paid positions. Our results thus document significant costs borne by minorities during a unique episode of state-sanctioned discrimination.

Suggested Citation

  • Aneja, Abhay & Xu, Guo, 2020. "The Costs of Employment Segregation: Evidence from the Federal Government under Wilson," Institute for Research on Labor and Employment, Working Paper Series qt7sw871kr, Institute of Industrial Relations, UC Berkeley.
    • Handle: RePEc:cdl:indrel:qt7sw871kr
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    1. Katie Jajtner & Matt Messel & Jason Fletcher, 2023. "Social Security Disability Insurance and intergenerational economic mobility," Contemporary Economic Policy, Western Economic Association International, vol. 41(4), pages 575-593, October.

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    Keywords

    Social and Behavioral Sciences; segregation; federal segregation; racial earnings inequality; civil service; Woodrow Wilson; public policy; discrimination;
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