Skip to main content

Research Repository

Advanced Search

Racial discrimination in the U.S. labor market: employment and wage differentials by skill

Borowczyk-Martins, Daniel; Bradley, Jake; Tarasonis, Linas

Authors

Daniel Borowczyk-Martins

JAKE BRADLEY Jake.Bradley@nottingham.ac.uk
Assistant Professor of Economics

Linas Tarasonis



Abstract

In the U.S. the average black worker has a lower employment rate and earns a lower wage compared to his white counterpart. Lang and Lehmann (2012) argue that black-white wage and employment gaps are smaller for high-skill workers. We show that a model combining employer taste-based discrimination, search frictions and skill complementarities can replicate these regularities, and estimate it using data from the U.S. manufacturing sector. We find that discrimination is quantitatively important to understand differences in wages and job finding rates across workers with low education levels, whereas skill differences are the main driver of those differences among workers with high education levels.

Journal Article Type Article
Journal Labour Economics
Print ISSN 0927-5371
Electronic ISSN 1879-1034
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 49
APA6 Citation Borowczyk-Martins, D., Bradley, J., & Tarasonis, L. (in press). Racial discrimination in the U.S. labor market: employment and wage differentials by skill. Labour Economics, 49, https://doi.org/10.1016/j.labeco.2017.09.007
DOI https://doi.org/10.1016/j.labeco.2017.09.007
Keywords Employment and wage gaps; Discrimination; Job search; Sorting
Publisher URL http://www.sciencedirect.com/science/article/pii/S092753711730307X
Copyright Statement Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by-nc-nd/4.0

Files

discrimination.pdf (736 Kb)
PDF

Copyright Statement
Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by-nc-nd/4.0





You might also like



Downloadable Citations

;