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Racial and Ethnic Differences in Nonwage Compensation

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  • Joseph A. Ritter

Abstract

Previous research has found that, after controlling for test scores, measured black-white wage gaps are small but unemployment gaps remain large. This paper complements this previous research by examining the incidence of employer-provided benefits from the same premarket perspective. However, marriage rates differ substantially by race, and the possibility of health-insurance coverage through a spouse’s employer therefore distorts how the distribution of benefits available in the market to an individual is expressed in the distribution of benefits received. Two imputation strategies are used to address this complication. The evidence suggests that benefit availability gaps are small.
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Suggested Citation

  • Joseph A. Ritter, 2013. "Racial and Ethnic Differences in Nonwage Compensation," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 52(4), pages 829-852, October.
    • Handle: RePEc:bla:indres:v:52:y:2013:i:4:p:829-852
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    File URL: http://hdl.handle.net/10.1111/irel.12037
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    1. Carneiro, Pedro & Heckman, James J & Masterov, Dimitriy V, 2005. "Labor Market Discrimination and Racial Differences in Premarket Factors," Journal of Law and Economics, University of Chicago Press, vol. 48(1), pages 1-39, April.
    2. Royalty, Anne Beeson & Abraham, Jean M., 2006. "Health insurance and labor market outcomes: Joint decision-making within households," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1561-1577, September.
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    5. 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.
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    7. Derek Neal, 2004. "The Measured Black-White Wage Gap among Women Is Too Small," Journal of Political Economy, University of Chicago Press, vol. 112(S1), pages 1-28, February.
    8. Joseph A Ritter & Lowell J Taylor, 2011. "Racial Disparity in Unemployment," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 30-42, February.
    9. Brooks Pierce, 2001. "Compensation Inequality," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(4), pages 1493-1525.
    10. Irena Dushi & Marjorie Honig, 2005. "Offers or Take-up: Explaining Minorities’ Lower Health Insurance Coverage," Economics Working Paper Archive at Hunter College 412, Hunter College Department of Economics.
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    Cited by:

    1. Timothy F. Harris & Aaron Yelowitz, 2017. "Nudging Life Insurance Holdings In The Workplace," Economic Inquiry, Western Economic Association International, vol. 55(2), pages 951-981, April.
    2. Timothy F. Harris & Aaron Yelowitz & Jeffery Talbert & Alison Davis, 2023. "Adverse selection in the group life insurance market," Economic Inquiry, Western Economic Association International, vol. 61(4), pages 911-941, October.

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