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Estimating Counterfactual Densities: An application to Black-White Wage Differentials in the U.S

Author

Listed:
  • Donal O'Neill

    (Economics, National University of Ireland, Maynooth, Ireland)

  • Olive Sweetman

    (Economics, National University of Ireland, Maynooth, Ireland)

  • Dirk van de Gaer

    (Economics, University of Ghent, Belgium)

Abstract

In this paper we use a semi-parmaetric procedure developed by DiNardo et al(1996),to examine the distribution of the racial wage gap in the U.S and to examine the extent to which forces underlying this wage gap vary throughout the distribution. In carrying out our analyses, we focus on recent work by Neal and Johnson who argue that one test score explains much of the average racial wage gap for men. Our resutls show that the wage differential varies significantly throughout the distribution Furthermore Neal and Johnson's conlcusion appears to be driven by forces working at the upper end of the distribution.

Suggested Citation

  • Donal O'Neill & Olive Sweetman & Dirk van de Gaer, 2000. "Estimating Counterfactual Densities: An application to Black-White Wage Differentials in the U.S," Economics Department Working Paper Series n1040600, Department of Economics, National University of Ireland - Maynooth.
    • Handle: RePEc:may:mayecw:n1040600
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    References listed on IDEAS

    as
    1. Joseph G. Altonji & Charles R. Pierret, 2001. "Employer Learning and Statistical Discrimination," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(1), pages 313-350.
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    3. Dorothe Bonjour & Michael Gerfin, 2001. "The unequal distribution of unequal pay - An empirical analysis of the gender wage gap in Switzerland," Empirical Economics, Springer, vol. 26(2), pages 407-427.
    4. Lundberg, Shelly & Startz, Richard, 1998. "On the Persistence of Racial Inequality," Journal of Labor Economics, University of Chicago Press, vol. 16(2), pages 292-323, April.
    5. James Albrecht & Anders Bjorklund & Susan Vroman, 2003. "Is There a Glass Ceiling in Sweden?," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 145-177, January.
    6. Lundberg, Shelly J & Startz, Richard, 1983. "Private Discrimination and Social Intervention in Competitive Labor Markets," American Economic Review, American Economic Association, vol. 73(3), pages 340-347, June.
    7. 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.
    8. Javier Gardeazabal & Arantza Ugidos, "undated". "Measuring the gender gap at different quantiles of the wage distribution," Studies on the Spanish Economy 108, FEDEA.
    9. 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.
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    Keywords

    Counterfactual Densities; Racial Wage Gap.;

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