Full Citation

Title: The Role of Location in Evaluating Racial Wage Disparity

Citation Type: Journal Article

Publication Year: 2013

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Abstract: A standard object of empirical analysis in labor economics is a modified Mincer wage function in which an individuals log wage is a function of education, experience, and race. We analyze this approach in a context where individuals live and work in different locations (thus facing different housing prices and wages). Our model justifies the traditional approach, but with the important caveat that the regression should include location-specific fixed effects. Empirical analysis of men in U.S. labor markets demonstrates that failure to condition on location causes us to significantly overstate the decline in black-white wage disparity over the past 60 years.

Url: https://link.springer.com/article/10.1186/2193-8997-2-2/fulltext.html

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Authors: Black, Dan A.; Kolesnikova, Natalia; Sanders, Seth G.; Taylor, Lowell J.

Periodical (Full): IZA Journal of Labor Economics

Issue: 2

Volume: 2

Pages: 1-18

Data Collections: IPUMS USA

Topics: Other, Race and Ethnicity

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