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Discrimination and Favoritism in the U.S. Labor Market: The Cost to a Wage Earner of Being Female and Black and the Benefit of Being Male and White

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  • Jeremiah Cotton

Abstract

. The hypothesis that Black female wage earners face greater wage discrimination than their White female or Black male counterparts is supported by evidence derived from a version of a widely used method for decomposing wage differentials. This version allows one to measure both the “cost” of being a female or Black wage earner and the “benefit” of being a male or White wage earner. The approach yields a model which is validated by testing with Census Bureau samples (n1,2,3,4= 23,800). The empirical test indicates that when skills are fairly comparable, the Black female earns an average wage nearly 21 percent lower than the White male average, whereas the White female's average was 15.5 percent lower. It suggests that being female has a relatively greater impact on Black female wages than being Black.

Suggested Citation

  • Jeremiah Cotton, 1988. "Discrimination and Favoritism in the U.S. Labor Market: The Cost to a Wage Earner of Being Female and Black and the Benefit of Being Male and White," American Journal of Economics and Sociology, Wiley Blackwell, vol. 47(1), pages 15-28, January.
    • Handle: RePEc:bla:ajecsc:v:47:y:1988:i:1:p:15-28
    DOI: 10.1111/j.1536-7150.1988.tb02001.x
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    Cited by:

    1. Jane Lapidus & Deborah Figart, 1998. "Remedying "Unfair Acts": U.S. Pay Equity by Race and Gender," Feminist Economics, Taylor & Francis Journals, vol. 4(3), pages 7-28.
    2. Theodore Davis, 1994. "Income inequities between black and white populations in southern nonmetropolitan counties," The Review of Black Political Economy, Springer;National Economic Association, vol. 22(4), pages 145-158, June.
    3. Theodore Davis, 2002. "Local labor market structure and the implications for black unemployment in the late 1980s," The Review of Black Political Economy, Springer;National Economic Association, vol. 30(2), pages 53-73, September.

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