Resource title

Wages, Sorting on Skill, and the Racial Composition of Jobs

Resource image

image for OpenScout resource :: Wages, Sorting on Skill, and the Racial Composition of Jobs

Resource description

Wages for black and white workers are substantially lower in occupations with a high density of black employees, following standard controls. Such correlations can exist absent discrimination or as a result of discrimination. In wage level equations, the magnitude of the correlation falls sharply after controlling for occupational skills. Longitudinal estimates accounting for worker heterogeneity indicate little if any wage change associated with changes in racial composition. Results support a ?quality sorting? explanation, with racial density serving as an index of unmeasured skills. Although past discrimination helps determine the present pattern of job sorting, current discrimination cannot explain the relationship between wages and racial density. Current discrimination reflected in racial wage gaps occurs within occupations or across occupations in a manner uncorrelated with racial composition.

Resource author

David A. Macpherson, Barry T. Hirsch

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/20427

Resource license

Adapt according to the presented license agreement and reference the original author.