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Hispanics and the Local Labour Market Earnings of Blacks

Hispanics and the Local Labour Market Earnings of Blacks The effect of the relative supply of Hispanics onthe relative earnings of Blacks in US labourmarkets is examined. The data source for theempirical estimates is the March 1988 CurrentPopulation Survey. The results support one of thekey features of the Becker model of discrimination,namely, that the extent of discrimination is affectedby relative supply. Results also indicated that anincrease in the number of Hispanics in a locallabour market will reduce the income of otherwisecomparable Blacks. However, if the Black laboursupply in a local labour market is sufficiently large,a given percentage increase in the relative supplyof Blacks will have a more negative impact onaverage Black earnings than would the samepercentage increase in the number of Hispanics. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Manpower Emerald Publishing

Hispanics and the Local Labour Market Earnings of Blacks

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References (5)

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0143-7720
DOI
10.1108/01437729110135303
Publisher site
See Article on Publisher Site

Abstract

The effect of the relative supply of Hispanics onthe relative earnings of Blacks in US labourmarkets is examined. The data source for theempirical estimates is the March 1988 CurrentPopulation Survey. The results support one of thekey features of the Becker model of discrimination,namely, that the extent of discrimination is affectedby relative supply. Results also indicated that anincrease in the number of Hispanics in a locallabour market will reduce the income of otherwisecomparable Blacks. However, if the Black laboursupply in a local labour market is sufficiently large,a given percentage increase in the relative supplyof Blacks will have a more negative impact onaverage Black earnings than would the samepercentage increase in the number of Hispanics.

Journal

International Journal of ManpowerEmerald Publishing

Published: May 1, 1991

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