IDEAS home Printed from https://ideas.repec.org/p/osf/socarx/24cvs.html
   My bibliography  Save this paper

Black and Latinx Workers Reap Lower Rewards than White Workers from Careers in Big Prosperous Cities

Author

Listed:
  • Buchholz, Maximilian
  • Storper, Michael

Abstract

The large labor markets of big prosperous cities offer greater possibilities for workers to gain skills and experience through successively better employment opportunities. This "experience effect" contributes to the higher average wages that are found in big urban areas compared to the economy as a whole. Racial wage inequality is also higher in bigger cities than in the economy on average. We offer an explanation for this pattern, demonstrating that there is substantial racial inequality in the economic returns to work experience acquired in big cities. Using data from the National Longitudinal Survey of Youth, 1979 we find that each year of big city work experience is worth about one quarter to half as much for Black and Latinx workers as it is for White workers, in terms of hourly wages. One-third of this inequality can be explained by racial disparities in the benefits of high-skill work experience. This research identifies a heretofore unknown source of inequality that is distinctly urban in nature, and expands our knowledge of the challenges to reaching inter-racial wage equality.

Suggested Citation

  • Buchholz, Maximilian & Storper, Michael, 2024. "Black and Latinx Workers Reap Lower Rewards than White Workers from Careers in Big Prosperous Cities," SocArXiv 24cvs, Center for Open Science.
  • Handle: RePEc:osf:socarx:24cvs
    DOI: 10.31219/osf.io/24cvs
    as

    Download full text from publisher

    File URL: https://osf.io/download/6647f1af7250fa01fa4e7c97/
    Download Restriction: no

    File URL: https://libkey.io/10.31219/osf.io/24cvs?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:osf:socarx:24cvs. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: OSF (email available below). General contact details of provider: https://arabixiv.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.