English, Article, Journal or magazine article edition: Wages, racial composition, and quality sorting in labor markets B. T. Hirsch; D. A. Macpherson

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Bookmark: http://trove.nla.gov.au/version/189345
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Wages, racial composition, and quality sorting in labor markets
Author
  • B. T. Hirsch
  • D. A. Macpherson
Physical Description
  • preprint
Notes
  • This paper examines the relationship between wage rates and the racial composition of jobs, using large cross-sectional and longitudinal samples constructed from monthly Current Population Surveys for 1983-92. Support is found for a "quality sorting" model that posits an equilibrium in which the racial composition of jobs serves as a skill index of unmeasured labor quality. Estimation of standard wage-level equations shows that wages of both black and white workers are substantially lower in occupations with a high density of blacks. Consistent with the quality sorting hypothesis, the magnitude of the relationship is reduced sharply after accounting for occupational skill measures. Longitudinal wage-change estimates controlling for person-specific quality indicate little if any causal effect of racial composition on wages. Estimates of racial discrimination are reduced only moderately after accounting for racial composition; unexplained differentials occur within occupations or reflect inter-occupational differences uncorrelated with racial composition and occupational skill measures.
  • RePEc:wop:wispod:1038-94
Language
  • English
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