Race and the Accumulation of Human Capital across the Career: A Theoretical Model and Fixed‐Effects Application

Tomaskovic‐Devey, Donald; Thomas, Melvin E.; Johnson, Kecia R.

doi:10.1086/431779

Cited by 215 publications

(151 citation statements)

References 53 publications

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“…26-27). Likewise, controls for work experience or firm tenure may be endogenous to the process of employment discrimination if minorities are excluded from those opportunities necessary to building stable work histories (see Tomaskovic-Devey et al 2005). While statistical models represent an extremely important approach to the study of race differentials, researchers should use caution in making causal interpretations of the indirect measures of discrimination derived from residual estimates.…”

Section: Statistical Analysesmentioning

confidence: 99%

The Sociology of Discrimination: Racial Discrimination in Employment, Housing, Credit, and Consumer Markets

2008

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Persistent racial inequality in employment, housing, and a wide range of other social domains has renewed interest in the possible role of discrimination. And yet, unlike in the pre-civil rights era, when racial prejudice and discrimination were overt and widespread, today discrimination is less readily identifiable, posing problems for social scientific conceptualization and measurement. This article reviews the relevant literature on discrimination, with an emphasis on racial discrimination in employment, housing, credit markets, and consumer interactions. We begin by defining discrimination and discussing relevant methods of measurement. We then provide an overview of major findings from studies of discrimination in each of the four domains; and, finally, we turn to a discussion of the individual, organizational, and structural mechanisms that may underlie contemporary forms of discrimination. This discussion seeks to orient readers to some of the key debates in the study of discrimination and to provide a roadmap for those interested in building upon this long and important line of research. Keywordsrace; inequality; measurement; mechanisms; African Americans; racial minorities Persistent racial inequality in employment, housing, and other social domains has renewed interest in the possible role of discrimination. Contemporary forms of discrimination, however, are often subtle and covert, posing problems for social scientific conceptualization and measurement. This article reviews the relevant literature on racial discrimination, providing a roadmap for scholars who wish to build on this rich and important tradition. The charge for this article was a focus on racial discrimination in employment, housing, credit markets, and consumer interactions, but many of the arguments reviewed here may also extend to other domains (e.g., education, health care, the criminal justice system) and to other types of discrimination (e.g., gender, age, sexual orientation). We begin this discussion by defining discrimination and discussing methods for measuring discrimination. We then provide an overview of major findings from studies of discrimination in employment, housing, and credit and consumer markets. Finally, we turn to a discussion of the individual, organizational, and structural mechanisms that may underlie contemporary forms of discrimination.

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Section: Statistical Analysesmentioning

confidence: 99%

The Sociology of Discrimination: Racial Discrimination in Employment, Housing, Credit, and Consumer Markets

2008

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“…In the employment dimension, these differences might be attributable to racial difference in labor supply choices (Juhn and Potter, 2006;Gayle et al, 2015) or to difference in labor demand. Two main strands of research focus on the discriminatory hiring aspect: one group of papers analyze disparities in employment outcomes beyond that explained through human capital characteristics (Wilson et al,1995;Tomaskovic-Devey et al, 2005) while a second cluster of papers are experimental studies that find consistent evidence of racial discrimination where white names trigger a callback rate that was significantly higher than that of equally qualified black applicants, with estimates of white preference ranging from 50 to 240% (Cross et al, 1989;Turner et al, 1991;Fix & Struyk, 1993;Bendick et al, 1994;Bertrand & Mullainathan, 2004;Darolia et al, 2015;see Pager 2007 for a review). Also perceived discrimination (demand side) may lead to diminished effort (supply) or performance in the labor market, which itself gives rise to negative outcomes.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Within academic research, racial disparity has been documented in various dimensions such as housing (Quillian 2003), 1 educational attainment (Hernandez et al 2011, Tomaskovic-Devey et al 2005, sector of occupation (BLS 2011), and region of residence (Wagmiller 2007). This paper sheds light on disparity in current pay when important individual level attributes are controlled to compare outcomes across individuals of different race but otherwise similar 2 thus empirically capturing and characterizing racial stratification (Darity 2005).…”

Section: Introductionmentioning

confidence: 99%

Racial Earnings Disparities with Endogenous Labor Market Participation

Lahiri

2018

J Econ Race Policy

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This paper examines racial disparity in wage income earnings in the USA across different quantiles, after accounting for the endogeneity of labor market engagement which is captured using the continuous variable: annual number of weeks worked. Controlling for this endogeneity is important because changes in income earned would affect the labor supply, while on the labor demand side any pressures that cause racial disparity is likely to affect both hiring and pay decisions. State-sector level averages for weather-related work absences are used as instruments for number of weeks worked at the individual level and robustness of the results are verified. The instrumental variable conditional and generalized quantile regression techniques are used for analyzing the disparity. The results find that the racial disparity gets larger at the upper quantiles even when controlling for other covariates ensure that the individuals are similar in important attributes.

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“…Despite legislation and institutional policy aimed at reducing inequality, income disparity in the labor market still exists. For example, studies show that a wage gap among racial groups exists [5,6] and has increased over time [7]. In addition, a gender pay gap remains, and the rate of convergence has slowed down noticeably since the 1990s [8].…”

Section: Introductionmentioning

confidence: 99%

Who Wants Income Inequality?: An Analysis of Public Choice under Income Comparison

2016

Social Sciences

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Abstract:This study investigates when individuals from advantaged and disadvantaged groups are in favor of reducing income inequality. Using a model that considers both an individual's absolute income and relative income, I examine the conditions under which income equalization is supported by some members in the advantaged group and, more interestingly, opposed by part of the disadvantaged group. In equilibrium, the valuation towards relative income, the initial endowment the difference between the two groups and the amount of income transfer upon equalization have opposite effects on different groups' likelihood of favoring equalization. To this end, I conduct a comparative statics analysis, and the results suggest that in order to incentivize more individuals to support inter-group income transfer, a policymaker's optimal strategy substantially depends on how much the society values relative income.

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Race and the Accumulation of Human Capital across the Career: A Theoretical Model and Fixed‐Effects Application

Cited by 215 publications

References 53 publications

The Sociology of Discrimination: Racial Discrimination in Employment, Housing, Credit, and Consumer Markets

The Sociology of Discrimination: Racial Discrimination in Employment, Housing, Credit, and Consumer Markets

Racial Earnings Disparities with Endogenous Labor Market Participation

Who Wants Income Inequality?: An Analysis of Public Choice under Income Comparison

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