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The Differing Nature of Black-White Wage Inequality Across Occupational Sectors

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  • David Bjerk

Abstract

The nature of racial wage inequality appears to differ across occupation sectors. Specifically, I find that all of the racial wage inequality in the white-collar job sector can be accounted for by controlling for the academic skill level of each worker, but almost half of the overall racial wage inequality remains in the blue-collar sector after controlling for each worker’s academic skill. Relatedly, after controlling for academic skill, I find that black workers are actually more likely to work in the white-collar sector than white workers. I show that these findings are consistent, and arguably directly implied by, both preference-based and statistical-based models of discrimination. However, omitted variable bias and measurement error also cannot be ruled out as possible explanations.

Suggested Citation

  • David Bjerk, 2007. "The Differing Nature of Black-White Wage Inequality Across Occupational Sectors," Journal of Human Resources, University of Wisconsin Press, vol. 42(2).
  • Handle: RePEc:uwp:jhriss:v:42:y:2007:i2:p398-434
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    References listed on IDEAS

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    1. Moro, Andrea & Norman, Peter, 2003. "Affirmative action in a competitive economy," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 567-594, March.
    2. David Card & Alan B. Krueger, 1992. "School Quality and Black-White Relative Earnings: A Direct Assessment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 151-200.
    3. Coate, Stephen & Loury, Glenn C, 1993. "Will Affirmative-Action Policies Eliminate Negative Stereotypes?," American Economic Review, American Economic Association, vol. 83(5), pages 1220-1240, December.
    4. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162, October.
    5. William Rodgers & William Spriggs, 1996. "What does the AFQT really measure: Race, wages, schooling and the AFQT score," The Review of Black Political Economy, Springer;National Economic Association, vol. 24(4), pages 13-46, June.
    6. Andrew M. Gill, 1989. "The Role of Discrimination in Determining Occupational Structure," ILR Review, Cornell University, ILR School, vol. 42(4), pages 610-623, July.
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