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Workplace Segregation in the United States: Race, Ethnicity, and Skill

Author Info

Listed author(s):
  • Judith Hellerstein
  • David Neumark

Abstract

We study workplace segregation in the United States using a unique matched employer-employee dataset that we have created. We first present measures of workplace segregation by race and ethnicity, using simulation methods to measure segregation beyond what would occur randomly as workers are distributed across establishments. We then assess the role of skill differentials in generating workplace segregation, as skilled workers may be more complementary with other skilled workers than with unskilled workers, and skill is often correlated with race and ethnicity. Specifically, we measure the extent of segregation by education level and quality as well as by language ability, providing informative contrasts with measures of segregation by race and ethnicity. Finally, we attempt to distinguish between segregation by skill based on general crowding of the unskilled into a narrow set of jobs versus segregation based on common language for reasons such as complementarity among workers speaking the same language. Our results consistently indicate that workplace segregation by race and ethnicity is driven in large part by skill differences across workers.

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Paper provided by Public Policy Institute of California in its series PPIC Working Papers with number 2004.05.

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Length: 54 pages
Date of creation: Apr 2004
Handle: RePEc:ppi:ppicwp:2004.05
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Find related papers by JEL classification:
  • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
  • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
  • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

References listed on IDEAS
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  1. Kimberly Bayard & Judith Hellerstein & David Neumark & Kenneth Troske, 1999. "Why are Racial and Ethnic Wage Gaps Larger for Men than for Women? Exploring the Role of Segregation," NBER Working Papers 6997, National Bureau of Economic Research, Inc.
  2. William J. Carrington & Kenneth R. Troske, 1998. "Sex Segregation in U.S. Manufacturing," ILR Review, Cornell University, ILR School, vol. 51(3), pages 445-464, April.
  3. Judith K. Hellerstein & David Neumark, 2003. "Ethnicity, Language, and Workplace Segregation: Evidence from a New Matched Employer-Employee Data Set," Annals of Economics and Statistics, GENES, issue 71-72, pages 1-15.
  4. Kremer, M & Maskin, E, 1996. "Wage Inequality and Segregation by Skill," Working papers 96-23, Massachusetts Institute of Technology (MIT), Department of Economics.
  5. Federico Echenique & Roland G. Fryer Jr., 2005. "On the Measurement of Segregation," Labor and Demography 0503006, EconWPA.
  6. Boisso, Dale & Hayes, Kathy & Hirschberg, Joseph & Silber, Jacques, 1994. "Occupational segregation in the multidimensional case : Decomposition and tests of significance," Journal of Econometrics, Elsevier, vol. 61(1), pages 161-171, March.
  7. William J. Carrington & Kristin McCue & Brooks Pierce, 2000. "Using Establishment Size to Measure the Impact of Title VII and Affirmative Action," Journal of Human Resources, University of Wisconsin Press, vol. 35(3), pages 503-523.
  8. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162, September.
  9. Ihlanfeldt, Keith R & Sjoquist, David L, 1990. "Job Accessibility and Racial Differences in Youth Employment Rates," American Economic Review, American Economic Association, vol. 80(1), pages 267-276, March.
  10. Roland G. Fryer & Steven D. Levitt, 2004. "The Causes and Consequences of Distinctively Black Names," The Quarterly Journal of Economics, Oxford University Press, vol. 119(3), pages 767-805.
  11. Barry T. Hirsch & David A. Macpherson, 2004. "Wages, Sorting on Skill, and the Racial Composition of Jobs," Journal of Labor Economics, University of Chicago Press, vol. 22(1), pages 189-210, January.
  12. repec:adr:anecst:y:2003:i:71-72:p:02 is not listed on IDEAS
  13. Donohue, John J, III & Heckman, James, 1991. "Continuous versus Episodic Change: The Impact of Civil Rights Policy on the Economic Status of Blacks," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1603-1643, December.
  14. Harry J. Holzer, 1998. "Why Do Small Establishments Hire Fewer Blacks Than Large Ones?," Journal of Human Resources, University of Wisconsin Press, vol. 33(4), pages 896-914.
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  16. H. J. Holzer, "undated". "Why do small establishments hire fewer blacks than large ones," Institute for Research on Poverty Discussion Papers 1119-97, University of Wisconsin Institute for Research on Poverty.
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  18. Welch, Finis, 1990. "The Employment of Black Men," Journal of Labor Economics, University of Chicago Press, vol. 8(1), pages 26-74, January.
  19. David M. Cutler & Edward L. Glaeser & Jacob L. Vigdor, 1999. "The Rise and Decline of the American Ghetto," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 455-506, June.
  20. Brown, Charles & Medoff, James, 1989. "The Employer Size-Wage Effect," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1027-1059, October.
  21. Neal, Derek A & Johnson, William R, 1996. "The Role of Premarket Factors in Black-White Wage Differences," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 869-895, October.
  22. David Card & John E. DiNardo, 2002. "Skill-Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles," Journal of Labor Economics, University of Chicago Press, vol. 20(4), pages 733-783, October.
  23. Marianne Bertrand & Sendhil Mullainathan, 2004. "Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination," American Economic Review, American Economic Association, vol. 94(4), pages 991-1013, September.
  24. Lucia Foster & John C. Haltiwanger & C. J. Krizan, 2001. "Aggregate Productivity Growth: Lessons from Microeconomic Evidence," NBER Chapters,in: New Developments in Productivity Analysis, pages 303-372 National Bureau of Economic Research, Inc.
  25. Antonio Cabrales & Antoni Calvó, 2002. "Social preferences and skill segregation," Economics Working Papers 629, Department of Economics and Business, Universitat Pompeu Fabra.
  26. repec:adr:anecst:y:2033:i:71-72 is not listed on IDEAS
  27. Michael Kremer & Eric Maskin, 1996. "Wage Inequality and Segregation," Harvard Institute of Economic Research Working Papers 1777, Harvard - Institute of Economic Research.
  28. James J. Heckman, 1998. "Detecting Discrimination," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 101-116, Spring.
  29. Altonji, Joseph G. & Blank, Rebecca M., 1999. "Race and gender in the labor market," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 48, pages 3143-3259 Elsevier.
  30. O'Neill, June, 1990. "The Role of Human Capital in Earnings Differences between Black and White Men," Journal of Economic Perspectives, American Economic Association, vol. 4(4), pages 25-45, Fall.
  31. Kimberly Bayard & Judith Hellerstein & David Neumark & Kenneth R. Troske, 1999. "Why Are Racial And Ethnic Wage Gaps Larger For Men Than For Women? Exploring The Role Of Segregation Using The New Worker-Establishment Characteristics Database," Labor and Demography 9902002, EconWPA.
  32. Carrington, William J & Troske, Kenneth R, 1997. "On Measuring Segregation in Samples with Small Units," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(4), pages 402-409, October.
  33. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-442, June.
  34. Silber, Jacques, 1992. "Occupational Segregation Indices in the Multidimensional Case: A Note," The Economic Record, The Economic Society of Australia, vol. 68(202), pages 276-277, September.
  35. Higgs, Robert, 1977. "Firm-Specific Evidence on Racial Wage Differentials and Workforce Segregation," American Economic Review, American Economic Association, vol. 67(2), pages 236-245, March.
  36. William A. Darity & Patrick L. Mason, 1998. "Evidence on Discrimination in Employment: Codes of Color, Codes of Gender," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 63-90, Spring.
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