Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/140640 
Year of Publication: 
2015
Series/Report no.: 
Upjohn Institute Working Paper No. 15-241
Publisher: 
W.E. Upjohn Institute for Employment Research, Kalamazoo, MI
Abstract: 
Despite concern regarding labor market discrimination against Hispanics, previously published estimates show that Hispanic women earn higher hourly wages than white women with similar observable characteristics. This estimated wage premium is likely biased upwards because of the omission of an important control variable: cost of living. We show that Hispanic women live in locations (e.g., cities) with higher costs of living than whites. After we account for cost of living, the estimated Hispanic-white wage differential for non-immigrant women falls by approximately two-thirds. As a result, we find no statistically significant difference in wages between Hispanic and white women in the NLSY97.
Subjects: 
Hispanic-white wage disparities
Cost of living differentials
Immigrant and nonimmigrant Hispanics
NLSY
JEL: 
J31
J70
R23
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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