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The Effect on Black-White Wage Differences of Differences in the Quantity and Quality of Education

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  • Nan L. Maxwell

Abstract

Using data from the National Longitudinal Survey of Youth for the years 1979–88, the author examines the extent to which black-white differences in educational attainment, educational quality, and unmeasured individual ability can explain black-white wage differences. An analysis that corrects for both selectivity and ability biases inherent in estimating the education-wage relationship shows that the main source of the black-white wage differential is the racial difference in the quality rather than quantity of schooling. In fact, the author concludes, closing the racial gap in the basic skills learned in school could reduce the wage differential by two-thirds.

Suggested Citation

  • Nan L. Maxwell, 1994. "The Effect on Black-White Wage Differences of Differences in the Quantity and Quality of Education," ILR Review, Cornell University, ILR School, vol. 47(2), pages 249-264, January.
    • Handle: RePEc:sae:ilrrev:v:47:y:1994:i:2:p:249-264
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    Cited by:

    1. Shawn Ulrick, 2007. "Measuring the returns to education nonparametrically," Applied Economics Letters, Taylor & Francis Journals, vol. 14(13), pages 1005-1011.
    2. Stijn Broecke & Glenda Quintini & Marieke Vandeweyer, 2018. "Wage Inequality and Cognitive Skills: Reopening the Debate," NBER Chapters, in: Education, Skills, and Technical Change: Implications for Future US GDP Growth, pages 251-286, National Bureau of Economic Research, Inc.
    3. Li Gan & Guan Gong, 2004. "Mortality Risk and Educational Attainment of Black and White Men," NBER Working Papers 10381, National Bureau of Economic Research, Inc.
    4. Antecol, Heather & Bedard, Kelly, 2002. "The Racial Wage Gap: The Importance of Labor Force Attachment Differences," University of California at Santa Barbara, Economics Working Paper Series qt7cb6q4m9, Department of Economics, UC Santa Barbara.
    5. Kwabena Gyimah-Brempong & Rudy Fichtenbaum, 1997. "Racial wage gaps and differences in human capital," Applied Economics, Taylor & Francis Journals, vol. 29(8), pages 1033-1044.
    6. Srikanth Ramamurthy & Norman Sedgley, 2015. "Human Capital Choice and the Wage Gap: The Role of Worklife Expectancy and Statistical Discrimination," Journal of Labor Research, Springer, vol. 36(2), pages 175-187, June.
    7. Patricia E. Gaynor & Garey C. Durden, 1997. "The Cost of Being Nonwhite and the Added Cost of Being Female in The South and Southwest," The Review of Regional Studies, Southern Regional Science Association, vol. 27(2), pages 195-209, Fall.
    8. 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.
    9. William M. Rodgers & Leslie S. Stratton, 2010. "Male Marital Wage Differentials: Training, Personal Characteristics, And Fixed Effects," Economic Inquiry, Western Economic Association International, vol. 48(3), pages 722-742, July.
    10. Elton Mykerezi & Bradford F. Mills, 2008. "The Wage Earnings Impact of Historically Black Colleges and Universities," Southern Economic Journal, Southern Economic Association, vol. 75(1), pages 173-187, July.
    11. Elton Mykerezi & Bradford F. Mills, 2008. "The Wage Earnings Impact of Historically Black Colleges and Universities," Southern Economic Journal, John Wiley & Sons, vol. 75(1), pages 173-187, July.
    12. William Rodgers & John Holmes, 2004. "New estimates of within occupation African American-white wage gaps," The Review of Black Political Economy, Springer;National Economic Association, vol. 31(4), pages 69-88, June.
    13. 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.
    14. Arthur Sakamoto & Christopher R. Tamborini & ChangHwan Kim, 2018. "Long-Term Earnings Differentials Between African American and White Men by Educational Level," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 37(1), pages 91-116, February.
    15. Melissa Osborne & Herbert Gintis & Samuel Bowles, 2001. "The Determinants of Earnings: A Behavioral Approach," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1137-1176, December.
    16. Babcock, Phillip, 2008. "From Ties to Gains? Evidence on Connectedness and Human Capital Acquisition," University of California at Santa Barbara, Economics Working Paper Series qt6fw1m0x0, Department of Economics, UC Santa Barbara.
    17. repec:eee:labchp:v:3:y:1999:i:pc:p:3143-3259 is not listed on IDEAS

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