This paper is concerned with the analysis of age, period and cohort effects on the contribution of discrimination on the racial earning differential. The empirical evidences were computed using the data on the PNADs from 1987 to 2002 for black and white males living in urban areas. The earning differential was decomposed into two parts through the Oaxaca - Blinder methodology, the first one is characteristic effect and the second is the discrimination term. This decomposition was made for 84 cells defined by cohort and period. After that, the amount of earnings differential due to discrimination was decomposed in age, period and cohort effects. It was found that the cohort effect is smaller for younger generations, as the age effect is for the older individuals. Finally, related to the period effect, we found that periods with high inflation are associated with weaker contribution of discrimination to earning inequality.
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Length: Date of creation: 2004 Date of revision: Handle: RePEc:anp:en2004:144
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Find related papers by JEL classification: J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing J70 - Labor and Demographic Economics - - Labor Discrimination - - - General