Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Racial Labor Market Gaps: The Role of Abilities and Schooling Choices

Racial Labor Market Gaps: The Role of Abilities and Schooling Choices This paper studies the relationship between abilities, schooling choices, and black-white differentials in labor market outcomes. The analysis is based on a model of endogenous schooling choices. Agents' schooling decisions are based on expected future earnings, family background, and unobserved abilities. Earnings are also determined by unobserved abilities. The analysis distinguishes unobserved abilities from observed test scores. The model is implemented using data from the NLSY79. The results indicate that, even after controlling for abilities, there exist significant racial labor market gaps. They also suggest that the standard practice of equating observed test scores may overcompensate for differentials in ability. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Human Resources University of Wisconsin Press

Racial Labor Market Gaps: The Role of Abilities and Schooling Choices

Urzua, Sergio,
Journal of Human Resources , Volume 43 (4) – Apr 4, 2012
Download PDF
54 pages

Loading next page...
 
/lp/university-of-wisconsin-press/racial-labor-market-gaps-the-role-of-abilities-and-schooling-choices-7j8KXhTU5O

References

References for this paper are not available at this time. We will be adding them shortly, thank you for your patience.

Publisher
University of Wisconsin Press
ISSN
1548-8004

Abstract

This paper studies the relationship between abilities, schooling choices, and black-white differentials in labor market outcomes. The analysis is based on a model of endogenous schooling choices. Agents' schooling decisions are based on expected future earnings, family background, and unobserved abilities. Earnings are also determined by unobserved abilities. The analysis distinguishes unobserved abilities from observed test scores. The model is implemented using data from the NLSY79. The results indicate that, even after controlling for abilities, there exist significant racial labor market gaps. They also suggest that the standard practice of equating observed test scores may overcompensate for differentials in ability.

Journal

Journal of Human Resources – University of Wisconsin Press

Published: Apr 4, 2012

There are no references for this article.