Race And Gender Differentials In The Labor Market Remain Stubbornly: Critical Explorations Of Theory And Policy Assignment, NUI, Ireland
| University | National University of Ireland (NUI) |
| Subject | Critical Explorations Of Theory And Policy |
1. Introduction
Race and gender differentials in the labor market remain stubbornly persistent. Although the black/white wage gap appeared to be converging rapidly during the 1960s and early 1970s, black/white male wages have now stagnated for almost two decades.
The black/the white female wage gap has actually risen over the past 15 years. The Hispanic/white wage gap has risen among both males and females in recent years. In contrast, the gender wage gap showed no change in the 1960s and 1970s.
Not until the late 1970s did it begin to converge steadily (although a significant gender gap still exists). Of course, these wage gaps are only the most visible form of differences in labor market outcomes by race and gender. Substantial differences in labor force participation, unemployment rates, occupational location, non-wage compensation, job characteristics, and job mobility all exist by both race and sex.
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2. An overview of facts about race and gender in the labor market
Race and gender differentials in the labor market have been persistent over time, although the nature and magnitude of those differences have changed, as this section discusses. We begin with a basic set of facts about gender, race, and Hispanic/white differences in labor market outcomes and in personal characteristics (such as human capital measures) that are likely to be related to labor market outcomes.
We then provide some simple estimates of how differences in wages and employment are related to differences in characteristics and differences in labor market treatment given characteristics. One purpose of this analysis is to illustrate with the most recent data the basic regression techniques that have been used in hundreds of labor market studies of race and gender differences. We particularly discuss the difficulties that arise in differentiating between the effects of labor market discrimination and the effects of race and gender differences in preferences and human capital.
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