scholarly journals Education and Labor Market Discrimination

2011 ◽  
Vol 101 (4) ◽  
pp. 1467-1496 ◽  
Author(s):  
Kevin Lang ◽  
Michael Manove

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)

2010 ◽  
Vol 70 (4) ◽  
pp. 964-988 ◽  
Author(s):  
Jonathan A. Lanning

This article uses data from Major League Baseball's integration to identify the sources and magnitude of labor market discrimination. Returns to hiring black workers in this industry were high, and the industry's labor supply was uniquely suited for rapid integration, yet integration evolved slowly. Many explanations for this sluggishness are considered, including both taste-based and statistical discrimination. Ultimately, only owner and collective coworker discrimination can explain baseball's slow pace of integration. The estimated levels of discrimination are high, showing the median team sacrificed profits of nearly $2.2 million in 1950 dollars (over $19 million 2010 dollars) by delaying integration.


1993 ◽  
Vol 21 (4) ◽  
pp. 19-52 ◽  
Author(s):  
Kwabena Gyimah-Brempong ◽  
Rudy Fichtenbaum

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.


2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Magda Tsaneva ◽  
Uttara Balakrishnan

Abstract This paper uses data from rural India to study the relationship between local labor market opportunities and child education outcomes. We construct a Bartik index as a measure of exogenous changes in district-level labor demand and find that an increase in predicted overall employment growth is associated with higher years of education and better test scores for both boys and girls of primary school age. The effects on test scores of older boys are smaller and less statistically significant. Older girls, however, do benefit from better labor market opportunities. We do not find evidence for changes in school quality or district-level investment. Instead, we find support for increases in household education spending, possibly because of overall higher wages, or re-allocation of resources.


1998 ◽  
Vol 12 (2) ◽  
pp. 101-116 ◽  
Author(s):  
James J Heckman

The evidence on discrimination produced from the audit method is examined. Audits survey the average firm and not the marginal firm which determines the level of market discrimination. Taken on its own terms, there is little evidence of labor market discrimination from audit methods. The validity of audit methods is critically dependent on unverified assumptions about equality across race/gender groups of the distributions of unobserved (by audit designers) productivity components acted on by firms and about the way labor markets work. Audits can find discrimination when none exists and can disguise it when it does.


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