Racial disparities in job finding and offered wages by Roland G. Fryer, Devah Pager and Jo¨rg L. Spenkuch
Material type:
- text
- unmediated
- volume
- 00222186
- HB73 JOU
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Main Library Journal Article | Vol. 56, no.3 (pages 633-690) | SP17888 | Not for loan | For in house only |
The extent to which discrimination can explain racial wage gaps is one of the most divisive issues in the social sciences. Using a newly available data set, this paper develops a simple empirical test that, under plausible (but not innocuous) conditions, provides a lower bound on the extent of discrimination in the labor market. Taken at face value, our estimates imply that differential treatment accounts for at least one-third of the black-white wage gap. We argue that the patterns in our data are most naturally rationalized through a search-matching model in which employers statistically discriminate on the basis of race when hiring unemployed workers but learn about their marginal product over time.
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