ECON 426 Lecture Notes - Lecture 22: Production Function, Substitute Good, Gender Pay Gap
13 Jun 2018
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The Black-White Earnings Gap over the last 70 years
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Taste based discrimination
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Statistical Discrimination
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Outline
Black men are less likely to work overall
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Trend upwards is steeper for blacks
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After the 1970s, all lines trend upwards
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If they're not earning anything, they're left in the data as zeroes
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Fraction of Men not Employed
Fraction of Men not Working by Explanation and Race
Lecture 22 - Discrimination in the Labor Market
Wednesday, April 18, 2018
9:03 PM
ECON 426 Page 1
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Longer bar = black men
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Lightest grey = unemployed (in workforce but don't have jobs)
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Grey = out of the labor force
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Dark grey = institutionalized population (nursing homes, mental institution, incarceration, etc.) -
there's a large % incarcerated
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3 Reasons for non-participation
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Large increase in non-employment
Labor Force Participation
ECON 426 Page 2
Document Summary
Lecture 22 - discrimination in the labor market. The black-white earnings gap over the last 70 years. Black men are less likely to work overall. If they"re not earning anything, they"re left in the data as zeroes. Fraction of men not working by explanation and race. Lightest grey = unemployed (in workforce but don"t have jobs) Dark grey = institutionalized population (nursing homes, mental institution, incarceration, etc. ) there"s a large % incarcerated. Black man in the 1940s in the 90th percentile earned 37 log points/ranks lower than white men. Top of the black distribution moved into top of the total distribution after 60s/70s. Education + experience underlies some wage gap explanation (but not all of it. Using (log) wage regressions to investigate the sources of wage differences. Dblack,i = 0 if white, = 1 if black. Black = how much lower on average are log black earnings than white o.
