PS 106 Lecture 10: PS106- Class #10 Notes
9 Nov 2017
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White net worth 13x greater than black net worth. White net worth 10x greater than hispanic net worth. Rates are much higher for hispanic, black, and american indians. We know that racial discrimination was incredibly important 50 years ago, but the current view among labor economists is that it doesn"t matter much anymore. The prevailing wisdom is that the skills that people bring to the market are more important for explaining this wage gap. Earnings for black people is less than earning for white people, regardless of higher education or type of degree. Black job seekers were offered significantly less compensation than white by potential new employers. Black job seekers were much more likely to accept these lower offers than their white counterparts. Wage gaps narrow over time as black workers stay at the same job. Black unemployment remains twice the level of white unemployment, similar to where it was in 1972.
