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Black/White Wage Convergence: The Role of Public Sector Wages and Employment

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  • William J. Carrington
  • Kristin McCue
  • Brooks Pierce

Abstract

This paper assesses the relative contribution of the public and private sectors, through their employment and wages, to the black/white wage convergence that occurred in the U.S. economy over the 1963–92 period. Applying standard decomposition methods to Current Population Survey data, the authors show that almost all the convergence in black/white relative wages in the 1963–75 period was due to black/white convergence in the private sector. Similarly, the post-1975 slowdown in black/white wage convergence was almost completely due to a corresponding slowdown in the private sector. The unimportance of the public sector, the authors argue, arises for two reasons: the public sector never accounted for more than 20% of civilian employment over the 1963–92 period; and blacks' historic success in that sector left relatively little room for further wage gains there, whereas in the private sector blacks had considerable ground to make up.

Suggested Citation

  • William J. Carrington & Kristin McCue & Brooks Pierce, 1996. "Black/White Wage Convergence: The Role of Public Sector Wages and Employment," ILR Review, Cornell University, ILR School, vol. 49(3), pages 456-471, April.
    • Handle: RePEc:sae:ilrrev:v:49:y:1996:i:3:p:456-471
    DOI: 10.1177/001979399604900305
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    References listed on IDEAS

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    1. Leonard, Jonathan S, 1990. "The Impact of Affirmative Action Regulation and Equal Employment Law on Black Employment," Journal of Economic Perspectives, American Economic Association, vol. 4(4), pages 47-63, Fall.
    2. Donohue, John J, III & Heckman, James, 1991. "Continuous versus Episodic Change: The Impact of Civil Rights Policy on the Economic Status of Blacks," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1603-1643, December.
    3. James M. Poterba & Kim S. Rueben, 1994. "The Distribution of Public Sector Wage Premia: New Evidence Using Quantile Regression Methods," NBER Working Papers 4734, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Justin McCrary, 2007. "The Effect of Court-Ordered Hiring Quotas on the Composition and Quality of Police," American Economic Review, American Economic Association, vol. 97(1), pages 318-353, March.
    2. Damian Grimshaw, 2000. "Public Sector Employment, Wage Inequality and the Gender Pay Ratio in the UK," International Review of Applied Economics, Taylor & Francis Journals, vol. 14(4), pages 427-448.
    3. Justin McCrary, 2006. "The Effect of Court-Ordered Hiring Quotas on the Composition and Quality of Police," NBER Working Papers 12368, National Bureau of Economic Research, Inc.
    4. Virginia Parks, 2011. "Revisiting Shibboleths of Race and Urban Economy: Black Employment in Manufacturing and the Public Sector Compared, Chicago 1950–2000," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 35(1), pages 110-129, January.
    5. Jennifer Laird, 2017. "Public Sector Employment Inequality in the United States and the Great Recession," Demography, Springer;Population Association of America (PAA), vol. 54(1), pages 391-411, February.

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