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Race-specific urban wage premia and the black-white wage gap

Author

Listed:
  • Ananat, Elizabeth
  • Shihe, Fu
  • Ross, Stephen L.

Abstract

We establish a novel empirical fact about the black-white wage gap: looking both across and within metropolitan areas, increasing city size or employment density is associated with a larger black-white wage gap. The estimated effects represent between 9 and 18% of recent estimates of the black-white wage gap. Using a variety of techniques, we demonstrate that our within-city relationship is unlikely to be driven by racial differences in unobserved ability. Finally, we present evidence suggestive of a role for race-specific networks in explaining these differences in the black-white wage gap.

Suggested Citation

  • Ananat, Elizabeth & Shihe, Fu & Ross, Stephen L., 2018. "Race-specific urban wage premia and the black-white wage gap," Journal of Urban Economics, Elsevier, vol. 108(C), pages 141-153.
    • Handle: RePEc:eee:juecon:v:108:y:2018:i:c:p:141-153
    DOI: 10.1016/j.jue.2018.11.002
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    Citations

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    Cited by:

    1. William C. Horrace & Hyunseok Jung & Jonathan L. Pressler & Amy Ellen Schwartz, 2021. "What Makes a Classmate a Peer? Examining Which Peers Matter in NYC Elementary Schools," Center for Policy Research Working Papers 241, Center for Policy Research, Maxwell School, Syracuse University.
    2. Kalee Burns & Julie L. Hotchkiss, 2019. "Migration Constraints and Disparate Responses to Changing Job Opportunities," FRB Atlanta Working Paper 2019-1, Federal Reserve Bank of Atlanta.
    3. Eppelsheimer, Johann & Jahn, Elke J. & Rust, Christoph, 2022. "The spatial decay of human capital externalities - A functional regression approach with precise geo-referenced data," Regional Science and Urban Economics, Elsevier, vol. 95(C).
    4. McCartney, W. Ben & Shah, Avni M., 2022. "Household mortgage refinancing decisions are neighbor influenced, especially along racial lines," Journal of Urban Economics, Elsevier, vol. 128(C).
    5. Kenza Elass & Cecilia García-Peñalosa & Christian Schluter & Cecilia Garcia-Peñalosa, 2024. "Gender Gaps in the Urban Wage Premium," CESifo Working Paper Series 11374, CESifo.
    6. Elizabeth Ananat & Shihe Fu & Stephen L. Ross, 2020. "Agglomeration Economies and Race Specific Spillovers," Working Papers 2020-069, Human Capital and Economic Opportunity Working Group.
    7. Harald Bathelt & Maximilian Buchholz & Michael Storper, 2024. "The nature, causes, and consequences of inter-regional inequality," Journal of Economic Geography, Oxford University Press, vol. 24(3), pages 353-374.
    8. Ziteng Lei, 2022. "Short-run and long-run effects of peers from disrupted families," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(3), pages 1007-1036, July.
    9. Kalee Burns & Julie L. Hotchkiss, 2023. "The Role of Social Costs in Response to Labor Market Opportunities: Differences across Race," FRB Atlanta Working Paper 2023-7, Federal Reserve Bank of Atlanta.
    10. Buchholz, Maximilian & Storper, Michael, 2024. "Black and Latinx Workers Reap Lower Rewards than White Workers from Careers in Big Prosperous Cities," SocArXiv 24cvs, Center for Open Science.
    11. Bathelt, Harald & Buchholz, Maximilian & Storper, Michael, 2024. "The nature, causes, and consequences of inter-regional inequality," LSE Research Online Documents on Economics 123014, London School of Economics and Political Science, LSE Library.

    More about this item

    Keywords

    Black-white wage gap; Agglomeration economies; Urban wage premium; Employment density; Information networks; Racial inequality;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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