Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/92269
Authors: 
Black, Dan A.
Kolesnikova, Natalia
Sander, Seth G.
Taylor, Lowell J.
Year of Publication: 
2013
Citation: 
[Journal:] IZA Journal of Labor Economics [ISSN:] 2193-8997 [Publisher:] Springer [Place:] Heidelberg [Volume:] 2 [Year:] 2013 [Pages:] 1-18
Abstract: 
A standard object of empirical analysis in labor economics is a modified Mincer wage function in which an individual's 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.
Subjects: 
wage regressions
racial wage disparity
theory of local labor markets
JEL: 
J31
J71
R23
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/2.0/
Document Type: 
Article
Appears in Collections:

Files in This Item:
File
Size
246.83 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.