The Role of Pre-market Factors in Black-white Wage Differences

The Role of Pre-market Factors in Black-white Wage Differences PDF Author: Derek A. Neal
Publisher:
ISBN:
Category : African American youth
Languages : en
Pages : 35

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Book Description
Many attempts to measure the wage effects of current labor market discrimination against minorities include controls for worker productivity that (1) could themselves be affected by market discrimination and (2) are very imprecise measures of worker skill. The resulting estimates of residual wage gaps may be biased. Our approach is a parsimoniously specified wage equation which controls for skill with the score of a test administered as teenagers prepared to leave high school and embark on work careers or post-secondary education. Independent evidence shows that this test score is a racially unbiased measure of the skills and abilities these teenagers were about to bring to the labor market. We find that this one test score explains all of the black-white wage gap for young women and much of the gap for young men. For today's young adults, the black-white wage gap primarily reflects a skill gap, which in turn can be traced, at least in part, to observable differences in the family backgrounds and school environments of black and white children. While our results do provide some evidence of current labor market discrimination, skill gaps play such a large role that we believe future research should focus on the obstacles black children face in acquiring productive skills

The Role of Pre-market Factors in Black-white Wage Differences

The Role of Pre-market Factors in Black-white Wage Differences PDF Author: Derek A. Neal
Publisher:
ISBN:
Category : African American youth
Languages : en
Pages : 35

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Book Description
Many attempts to measure the wage effects of current labor market discrimination against minorities include controls for worker productivity that (1) could themselves be affected by market discrimination and (2) are very imprecise measures of worker skill. The resulting estimates of residual wage gaps may be biased. Our approach is a parsimoniously specified wage equation which controls for skill with the score of a test administered as teenagers prepared to leave high school and embark on work careers or post-secondary education. Independent evidence shows that this test score is a racially unbiased measure of the skills and abilities these teenagers were about to bring to the labor market. We find that this one test score explains all of the black-white wage gap for young women and much of the gap for young men. For today's young adults, the black-white wage gap primarily reflects a skill gap, which in turn can be traced, at least in part, to observable differences in the family backgrounds and school environments of black and white children. While our results do provide some evidence of current labor market discrimination, skill gaps play such a large role that we believe future research should focus on the obstacles black children face in acquiring productive skills

Labor Market Discrimination and Racial Differences in Premarket Factors

Labor Market Discrimination and Racial Differences in Premarket Factors PDF Author: Pedro Carneiro
Publisher:
ISBN:
Category : Minorities
Languages : en
Pages : 78

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Book Description
This paper examines minority-white wage gaps. Neal and Johnson (1996) show that controlling for ability measured in the teenage years eliminates young adult wage gaps for all groups except for black males, for whom they eliminate 70% of the gap. Their study has been faulted because minority children and their parents may have pessimistic expectations about receiving fair rewards for their skills and so they may invest less in skill formation. If this is the case, discrimination may still affect wages, albeit indirectly, though it would appear that any racial differences in wages are due to differences in acquired traits. We find that gaps in ability across racial and ethnic groups open up at very early ages, long before child expectations are likely to become established. These gaps widen with age and schooling for Blacks, but not for Hispanics which indicates that poor schools and neighborhoods cannot be the principal factors affecting the slow black test score growth rate. Test scores depend on schooling attained at the time of the test. Adjusting for racial and ethnic differences in schooling attainment at the age the test is taken reduces the power of measured ability to shrink wage gaps for blacks, but not for other minorities. The evidence from expectations data are mixed. Although all groups are quite optimistic about future schooling outcomes, minority parents and children have more pessimistic expectations about child schooling relative to white children and their parents when their children are young. At later ages, expectations are more uniform across racial and ethnic groups. However, we also present some evidence that expectations data are unreliable and ambiguous. We also document the presence of disparities in noncognitive traits across racial and ethnic groups. These characteristics have been shown elsewhere to be important for explaining the labor market outcomes of adults. This evidence points to the importance of early (preschool) family factors and environments in explaining both cognitive and noncognitive ability differentials by ethnicity and race. Policies that foster both types of ability are far more likely to be effective in promoting racial and ethnic equality for most groups than are additional civil rights and affirmative action policies targeted at the workplace.

The Declining Importance of Race and Gender in the Labor Market

The Declining Importance of Race and Gender in the Labor Market PDF Author: June E. O'Neill
Publisher: AEI Press
ISBN: 0844772461
Category : Political Science
Languages : en
Pages : 315

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Book Description
The Declining Importance of Race and Gender in the Labor Market provides historical background on employment discrimination and wage discrepancies in the United States and on government efforts to address employment discrimination

The Economics of Discrimination

The Economics of Discrimination PDF Author: Gary S. Becker
Publisher: University of Chicago Press
ISBN: 0226041042
Category : Business & Economics
Languages : en
Pages : 178

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Book Description
This second edition of Gary S. Becker's The Economics of Discrimination has been expanded to include three further discussions of the problem and an entirely new introduction which considers the contributions made by others in recent years and some of the more important problems remaining. Mr. Becker's work confronts the economic effects of discrimination in the market place because of race, religion, sex, color, social class, personality, or other non-pecuniary considerations. He demonstrates that discrimination in the market place by any group reduces their own real incomes as well as those of the minority. The original edition of The Economics of Discrimination was warmly received by economists, sociologists, and psychologists alike for focusing the discerning eye of economic analysis upon a vital social problem—discrimination in the market place. "This is an unusual book; not only is it filled with ingenious theorizing but the implications of the theory are boldly confronted with facts. . . . The intimate relation of the theory and observation has resulted in a book of great vitality on a subject whose interest and importance are obvious."—M.W. Reder, American Economic Review "The author's solution to the problem of measuring the motive behind actual discrimination is something of a tour de force. . . . Sociologists in the field of race relations will wish to read this book."—Karl Schuessler, American Sociological Review

Labor Market Discrimination and Black-white Differences in Economic Status

Labor Market Discrimination and Black-white Differences in Economic Status PDF Author: Irwin Garfinkel
Publisher:
ISBN:
Category : African Americans
Languages : en
Pages : 44

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Book Description


Race, Markets, and Social Outcomes

Race, Markets, and Social Outcomes PDF Author: Patrick L. Mason
Publisher: Springer
ISBN:
Category : Business & Economics
Languages : en
Pages : 216

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Book Description
Challenges the market power hypothesis, which asserts that racial discrimination and market competition are inversely correlated, with essays on employment, wage inequality, health, crime, and housing and credit markets. Specific topics include self-employed and employee African Americans in the New York city construction industry, measuring wage discrimination, and race as an issue in housing and credit markets. For those researching the interactions among race, institutions, and market and social outcomes, and for students in economics, sociology, African-American studies, and urban studies. Annotation copyrighted by Book News, Inc., Portland, OR

Maximizing Intelligence

Maximizing Intelligence PDF Author: Eliezer Berkovits
Publisher: Transaction Publishers
ISBN: 9781412828277
Category : Psychology
Languages : en
Pages : 246

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Book Description
The "nature versus nurture" controversy dates back to at least the nineteenth century. How much of a role does genetics or environment play in accounting for reasoning skill and other intellectual aptitudes? At a time when the public school system in the United States is under attack, this debate has taken center stage in arguments about what accounts for differences in academic achievement. Maximizing Intelligence convincingly argues that, while both genetics and environment play a role in a child's intelligence, environmental factors, especially at an early age, are of primary importance. Working from this premise, Armor suggests how intelligence may be heightened. Armor presents four propositions about intelligence. His first is that intelligence exerts a major influence on educational and occupational success, following a chronological sequence, from a child's cognitive skills learned before school, to academic success during the school years, to eligibility for college. His second proposition is that intelligence can be changed, at least within limits. There is ample evidence that a child's intelligence is not fully given at birth, but continues to evolve and change at least through the early elementary school years, although at a declining rate. Proposition three is that intelligence is influenced by a series of "risk factors," and most of the influence occurs before a child reaches school age. Risk factors include parent intelligence and education, family income, family structure and size, nutrition, and specific parenting behaviors. The fourth proposition flows from the second and third--that the most promising avenues for maximizing intelligence come from a child's parents. Armor persuasively argues for a "whole family" approach whereby government programs are modified or created to inform parents of risk factors and to reward behaviors that optimize positive outcomes. Maximizing Intelligence is meticulously researched and reasoned, and will be welcomed by those interested in education, sociology, psychology, social theory, and policy studies.

No Shame in My Game

No Shame in My Game PDF Author: Katherine S. Newman
Publisher: Vintage
ISBN: 0307558657
Category : Social Science
Languages : en
Pages : 413

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Book Description
"Powerful and poignant.... Newman's message is clear and timely." --The Philadelphia Inquirer In No Shame in My Game, Harvard anthropologist Katherine Newman gives voice to a population for whom work, family, and self-esteem are top priorities despite all the factors that make earning a living next to impossible--minimum wage, lack of child care and health care, and a desperate shortage of even low-paying jobs. By intimately following the lives of nearly 300 inner-city workers and job seekers for two yearsin Harlem, Newman explores a side of poverty often ignored by media and politicians--the working poor. The working poor find dignity in earning a paycheck and shunning the welfare system, arguing that even low-paying jobs give order to their lives. No Shame in My Game gives voice to a misrepresented segment of today's society, and is sure to spark dialogue over the issues surrounding poverty, working and welfare.

What Do Wage Differentials Tell Us about Labor Market Discrimination?

What Do Wage Differentials Tell Us about Labor Market Discrimination? PDF Author: June O'Neill
Publisher:
ISBN:
Category : Discrimination in employment
Languages : en
Pages : 36

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Book Description
We examine the extent to which non-discriminatory factors can explain observed wage gaps between racial and ethnic minorities and whites, and between women and men. In general we find that differences in productivity-related factors account for most of the between group wage differences in the year 2000. Determinants of wage gaps differ by group. Differences in schooling and in skills developed in the home and in school, as measured by test scores, are of central importance in explaining black/white and Hispanic/white wage gaps among both women and men. Immigrant assimilation is an additional factor for Asians and workers from Central and South America. The sources of the gender gap are quite different, however. Gender differences in schooling and cognitive skills as measured by the AFQT are quite small and explain little of the pay gap. Instead the gender gap largely stems from choices made by women and men concerning the amount of time and energy devoted to a career, as reflected in years of work experience, utilization of part-time work, and other workplace and job characteristics.

America Becoming

America Becoming PDF Author: National Research Council
Publisher: National Academies Press
ISBN: 0309172489
Category : Social Science
Languages : en
Pages : 523

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Book Description
The 20th Century has been marked by enormous change in terms of how we define race. In large part, we have thrown out the antiquated notions of the 1800s, giving way to a more realistic, sociocultural view of the world. The United States is, perhaps more than any other industrialized country, distinguished by the size and diversity of its racial and ethnic minority populations. Current trends promise that these features will endure. Fifty years from now, there will most likely be no single majority group in the United States. How will we fare as a nation when race-based issues such as immigration, job opportunities, and affirmative action are already so contentious today? In America Becoming, leading scholars and commentators explore past and current trends among African Americans, Hispanics, Asian Americans, and Native Americans in the context of a white majority. This volume presents the most up-to-date findings and analysis on racial and social dynamics, with recommendations for ongoing research. It examines compelling issues in the field of race relations, including: Race and ethnicity in criminal justice. Demographic and social trends for Hispanics, Asian Americans, and Native Americans. Trends in minority-owned businesses. Wealth, welfare, and racial stratification. Residential segregation and the meaning of "neighborhood." Disparities in educational test scores among races and ethnicities. Health and development for minority children, adolescents, and adults. Race and ethnicity in the labor market, including the role of minorities in America's military. Immigration and the dynamics of race and ethnicity. The changing meaning of race. Changing racial attitudes. This collection of papers, compiled and edited by distinguished leaders in the behavioral and social sciences, represents the most current literature in the field. Volume 1 covers demographic trends, immigration, racial attitudes, and the geography of opportunity. Volume 2 deals with the criminal justice system, the labor market, welfare, and health trends, Both books will be of great interest to educators, scholars, researchers, students, social scientists, and policymakers.