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A Note on School Quality, Educational Attainment and the Wage Gap

Author

Listed:
  • Srikanth Ramamurthy

    (Loyola University Maryland)

  • Norman Sedgley

    (Loyola University Maryland)

Abstract

This paper explores the linkage between school quality, educational attainment and the wage gap. In a model of statistical discrimination based on both the quality and quantity of schooling, we show that lower-quality education can, on average, lead to lower human capital accumulation if agents anticipate future labor market discrimination. Because blacks in general have less access to good-quality schools compared to whites, this link provides a novel explanation for the differences in black–white educational attainment and the resulting wage gap.

Suggested Citation

  • Srikanth Ramamurthy & Norman Sedgley, 2019. "A Note on School Quality, Educational Attainment and the Wage Gap," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 45(3), pages 415-421, June.
    • Handle: RePEc:pal:easeco:v:45:y:2019:i:3:d:10.1057_s41302-018-00132-1
    DOI: 10.1057/s41302-018-00132-1
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    References listed on IDEAS

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    4. Amparo Castelló‐Climent & Rafael Doménech, 2008. "Human Capital Inequality, Life Expectancy And Economic Growth," Economic Journal, Royal Economic Society, vol. 118(528), pages 653-677, April.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Wage gap; Statistical discrimination; School quality; Human capital choice;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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