Black-White Wage Differential: The Relative Importance of Human Capital and Labor Market Structure

1993 ◽  
Vol 21 (4) ◽  
pp. 19-52 ◽  
Author(s):  
Kwabena Gyimah-Brempong ◽  
Rudy Fichtenbaum
Keyword(s):  
Human Capital ◽  
Labor Market ◽  
Market Structure ◽  
Wage Differential ◽  
Wage Gap ◽  
Decomposition Analysis ◽  
Relative Importance ◽  
White Males ◽  
Blacks And Whites ◽  
Unequal Opportunities

This article uses the decomposition analysis developed by Neumark and the 1987 CPS data to investigate the relative importance of human capital and labor market structure in explaining the observed wage differential between white males and blacks (both male and female). We find that labor market structure, as opposed to differences in human capital, explains a relatively large portion of the wage gap between white males and blacks. In addition to blacks and whites being paid different wages for the same work, they are also given unequal opportunities. This means that narrowing the human capital gap between the races will not be enough to close the wage gap, as argued by human capital theorists. It is equally important to pursue policies that provide access to higher paying jobs and industries for blacks.

scholarly journals ANALYSIS OF GENDER WAGE DIFFERENTIAL IN CHINA’S URBAN LABOR MARKET

2017 ◽  
Vol 62 (02) ◽  
pp. 423-445 ◽  
Author(s):  
ALMAS HESHMATI ◽  
BIWEI SU
Keyword(s):  
Labor Market ◽  
Wage Differential ◽  
Gender Wage Gap ◽  
Wage Gap ◽  
Women's Labor ◽  
Step Procedure ◽  
Female Wage ◽  
Urban Labor ◽  
Women's Labor Force Participation ◽  
Urban Labor Market

This paper estimates the gender wage gap and its composition in China’s urban labor market. The traditional Blinder–Oaxaca (1973) decomposition method with different weighing systems is employed. To correct for potential selection bias caused by women’s labor force participation, we employ the Heckman’s two-step procedure to estimate the female wage function. A large proportion of the gender wage gap is unexplained by differences of productive characteristics of individuals. Even though women have higher level of education attainments on average, they receive lower wages than men. Both facts suggest a potential discrimination against women in China.

scholarly journals Separate and Unequal in the Labor Market: Human Capital and the Jim Crow Wage Gap

2017 ◽  
Vol 35 (3) ◽  
pp. 655-696 ◽  
Author(s):  
Celeste K. Carruthers ◽  
Marianne H. Wanamaker
Keyword(s):  
Human Capital ◽  
Labor Market ◽  
Jim Crow ◽  
Wage Gap ◽  
Separate And Unequal

Gender segregation and wage differentials in India: the role of educational attainment and occupational choices

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tushar Agrawal
Keyword(s):  
Rural Areas ◽  
Urban Areas ◽  
Wage Differential ◽  
Wage Gap ◽  
Decomposition Analysis ◽  
Joint Effect ◽  
Gender Segregation ◽  
Content Type ◽  
Information Index ◽  
Rural And Urban Areas

PurposeThe purpose of this paper is to examine the interrelation between two important dimensions of gender segregation: education and occupation. It further investigates the gender wage gap.Design/methodology/approachThe author uses a three-way additive decomposition of the mutual information index – an index based on the concept of entropy. A non-parametric wage decomposition method that uses matching comparisons is used for measuring the wage gap.FindingsThe results show that the extent of gender segregation in India is higher in urban areas than that in rural areas. Most of the observed segregation in rural labour markets originates from educational outcomes, whereas in urban markets it is due to occupational profile of individuals. The findings of the wage decomposition analysis suggest that education in rural areas also explains a sizeable part of the gender wage differential. Nevertheless, a large share of the wage gap remains unexplained in both rural and urban areas.Originality/valueWhile much research has looked at occupational segregation, less attention has been paid to educational segregation. The paper uses a unique approach to understand the joint effect of occupation and education in explaining gender segregation.

scholarly journals Determinants of the wage gap in Ecuador: analysis under a minceriano model related to dummy aggregate variables

2019 ◽  
Vol 3 (29) ◽  
pp. 70
Author(s):  
Jorge Luis López Lapo ◽  
Germania Sarmiento Castillo
Keyword(s):  
Human Capital ◽  
Labor Market ◽  
Old Age ◽  
Gender Discrimination ◽  
Wage Gap ◽  
Human Capital Theory ◽  
Labor Income ◽  
Capital Theory ◽  
Secondary Information

Introduction The Human Capital Theory exposes that inequality in labor income is due to different factors, including productivity and education. Objectiveanalyze income inequality in the Ecuadorian labor market. The research takes data from the National Employment, Unemployment and Underemployment Survey of INEC estimating the Mincerian equation (1974) by adding dummy variables.Materials and methods The research takes data of secondary information that rests in the ENEMDU survey updated to December 2018 that includes the characteristics of the EAP in Ecuador. Resultscharacterization of the gender variable, schooling positively influences their hourly wages. Discussion Regarding the gender variable, this long term of not correcting the salary differences may have an impact on old age. ConclusionsWhen there is gender discrimination, it is imperative to identify and quantify the jobs and professions to which women have access in a lesser proportion.

Labor Market Structure, Human Capital, and Earnings Inequality in Metropolitan Areas

Social Forces ◽  
1988 ◽  
Vol 67 (1) ◽  
pp. 86 ◽  
Author(s):  
Arthur Sakamoto
Keyword(s):  
Human Capital ◽  
Labor Market ◽  
Market Structure ◽  
Metropolitan Areas ◽  
Earnings Inequality

Labor Market Structure, Human Capital, and Earnings Inequality in Metropolitan Areas

Social Forces ◽  
1988 ◽  
Vol 67 (1) ◽  
pp. 86-107 ◽  
Author(s):  
A. Sakamoto
Keyword(s):  
Human Capital ◽  
Labor Market ◽  
Market Structure ◽  
Metropolitan Areas ◽  
Earnings Inequality

scholarly journals Education and Labor Market Discrimination

2011 ◽  
Vol 101 (4) ◽  
pp. 1467-1496 ◽  
Author(s):  
Kevin Lang ◽  
Michael Manove
Keyword(s):  
Labor Market ◽  
Cognitive Ability ◽  
Wage Differential ◽  
School Quality ◽  
Armed Forces ◽  
Statistical Discrimination ◽  
Qualification Test ◽  
Labor Market Discrimination ◽  
Blacks And Whites ◽  
Education Differentials

Using a model of statistical discrimination and educational sorting, we explain why blacks get more education than whites of similar cognitive ability, and we explore how the Armed Forces Qualification Test (AFQT), wages, and education are related. The model suggests that one should control for both AFQT and education when comparing the earnings of blacks and whites, in which case a substantial black-white wage differential emerges. We reject the hypothesis that differences in school quality between blacks and whites explain the wage and education differentials. Our findings support the view that some of the black-white wage differential reflects the operation of the labor market. (JEL I21, J15, J24, J31, J71)

The Labor Market Value of Health Improvements

2006 ◽  
Vol 9 (2) ◽  
Author(s):  
Jay Bhattacharya ◽  
Darius Noshir Lakdawalla
Keyword(s):  
Human Capital ◽  
Labor Market ◽  
Labor Force ◽  
Black Males ◽  
Market Value ◽  
Poor Health ◽  
White Males ◽  
Value Of Health

We analyze the value to the labor force of improvements in survival and health over the years 1970 to 1999. We find that survival gains and reductions in the number of work-days missed due to poor health have added about 8 percent to the remaining labor force value of black males, and about the same to the value of 60 year-old white males. This is almost as large an effect as a full year of schooling. Gains for younger white males appear to be approximately 5%, and gains for women are around 2%. Overall, health improvements have added $1.5 trillion to the value of labor market human capital over this period.

scholarly journals The Effect of the Israeli-Palestinian Conflict on the Palestinian labor Market and Human Capital Accumulation

2021 ◽  
Vol 4 (4) ◽  
pp. p111
Author(s):  
Sameh Hallaq
Keyword(s):  
Human Capital ◽  
Labor Market ◽  
Educational Attainment ◽  
Capital Accumulation ◽  
Geographical Variation ◽  
Wage Differential ◽  
Recent Literature ◽  
Human Capital Accumulation ◽  
Economic Costs ◽  
Employment Sector

This paper summarizes recent literature that discusses the economic costs of several conflict measures, e.g., “time and geographical variation in fatalities and other conflict incidents, days under curfews, checkpoints, movement restrictions, and Palestinian substitution labor by foreigner workers on the Palestinian labor market and human capital”. Earnings and unemployment are the main labor market indicators, while human capital was assessed by educational attainment. Also, this essay sheds light on the wage differential in the Palestinian labor market due to geographical and employment sector factors as a consequence of the ongoing conflict.

The Sport Mystique in Black Culture

1986 ◽  
Vol 3 (4) ◽  
pp. 305-319 ◽  
Author(s):  
William J. Rudman
Keyword(s):  
Labor Market ◽  
Social Structure ◽  
Market Structure ◽  
Upward Mobility ◽  
Black Culture ◽  
Daily Lives ◽  
The Social ◽  
Blacks And Whites ◽  
The Impact ◽  
The Relationship

This research examines the relationship between race, social structure, and sport orientations. Specifically, the questions addressed are whether blacks and whites differ in their orientations toward sport, and whether factors that influence sport orientations are race-dependent. Hypotheses concerning blacks’ and whites’ sports orientations are derived from prior research looking at the use of sport as a means of upward mobility and the impact of labor market structure on employment differences between blacks and whites. The results of this research raise some intriguing questions concerning the manner in which race and social structure affect an individual’s orientation toward sport. Overall, the results provide support for beliefs about differences in blacks’ and whites’ orientations toward sport. Blacks were more likely than whites to become vicariously involved in sport outcomes, and to incorporate sport into their daily lives. Perhaps the most important result is the finding that factors related to an individual’s position within the social structure have a similar impact on influencing both blacks’ and whites’ orientations toward sport. This would suggest that sport orientations for both blacks and whites are a result of an interaction between race and social structure that limits blacks’ opportunities in other professional occupations.

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