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What Went Wrong? The Erosion of Relative Earnings and Employment Among Young Black Men in the 1980s

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Author Info
John Bound
Richard B. Freeman

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Abstract

This paper shows a widening in black-white earnings and employment gaps among young men from the mid-l970s through the 1980s that differs among subgroups. Earnings gaps increased most among college graduates and in the midwest while gaps in employment-population rates grew most among high school dropouts. We attribute the differential widening to distinct shifts in demand for subgroups due to changes in industry and regional employment, the falling real minimum wage and deunionisation, the growth of the relative supply of black to white workers that was marked among college graduates, and to increased crime, that was marked among high school dropouts. The differential factors affecting the groups highlights the economic diversity of black Americans.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 3778.

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Date of creation: Jul 1991
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Handle: RePEc:nbr:nberwo:3778

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  1. Borghans, Lex & ter Weel, Bas & Weinberg, Bruce A., 2005. "People People: Social Capital and the Labor-Market Outcomes of Underrepresented Groups," IZA Discussion Papers 1494, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. David Card & Thomas Lemieux, 1993. "Wage Dispersion, Returns to Skill, and Black-White Wage Differentials," Working Papers 691, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
    Other versions:
  3. Lochner, L., 1999. "Education, Work, and Crime: Theory and Evidence," RCER Working Papers 465, University of Rochester - Center for Economic Research (RCER). [Downloadable!]
  4. Steven Raphael & RUDOLF WINTER-EBMER, 1998. "Identifying the Effect of Unemployment on Crime," University of California at San Diego, Economics Working Paper Series 1998-19, Department of Economics, UC San Diego. [Downloadable!]
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  5. Jeff Grogger, 1997. "Market Wages and Youth Crime," NBER Working Papers 5983, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. John S. Heywood & Daniel Parent, 2009. "Performance Pay and the White-Black Wage Gap," Cahiers de recherche 0916, CIRPEE. [Downloadable!]
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  7. repec:bep:eapcon:v:5:y:2006:i:1:p:1403-1403 is not listed on IDEAS
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  8. David Card & Thomas Lemieux, 1994. "Changing Wage Structure and Black-White Differentials Among Men and Women: A Longitudinal Analysis," NBER Working Papers 4755, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Kenneth Chay & David S. Lee, 1996. "Changes in Relative Wages in the 1980s: Returns to Observed and Unobserved Skills and Black-White Wage Differentials," Working Papers 751, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  10. Chad R. Wilkerson & Megan D. Williams, 2006. "Minority workers in the Tenth District: rising presence, rising challenges," Economic Review, Federal Reserve Bank of Kansas City, issue Q IV, pages 31-59. [Downloadable!]
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