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A nonparametric analysis of the black/white wage gap

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  • Shawn Ulrick

Abstract

This article estimates a nonparametric model of earnings to examine the black/white wage gap. This article extends the Oaxaca decomposition and adjusted wage ratios to a nonlinear form, to allow the use of this nonparametric approach. It finds that the results obtained nonparametrically are very similar to those obtained with variants of the (misspecified) Mincer model, suggesting that the parametric models may be appropriate in situations where the nonparametric estimator could not be applied.

Suggested Citation

  • Shawn Ulrick, 2005. "A nonparametric analysis of the black/white wage gap," Applied Economics Letters, Taylor & Francis Journals, vol. 12(13), pages 811-815.
    • Handle: RePEc:taf:apeclt:v:12:y:2005:i:13:p:811-815
    DOI: 10.1080/13504850500193166
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    References listed on IDEAS

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    1. Racine, Jeff & Li, Qi, 2004. "Nonparametric estimation of regression functions with both categorical and continuous data," Journal of Econometrics, Elsevier, vol. 119(1), pages 99-130, March.
    2. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    3. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    4. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    5. Murphy, Kevin M & Welch, Finis, 1990. "Empirical Age-Earnings Profiles," Journal of Labor Economics, University of Chicago Press, vol. 8(2), pages 202-229, April.
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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. Malcolm Coate & Shawn Ulrick, 2009. "Do Court Decisions Drive the Federal Trade Commission’s Enforcement Policy on Merger Settlements?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 34(2), pages 99-114, March.
    3. Mats Bergman & Malcolm Coate & Maria Jakobsson & Shawn Ulrick, 2010. "Comparing Merger Policies in the European Union and the United States," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 36(4), pages 305-331, June.

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