Why do minority men earn less? A study of wage differentials among the highly educated

  • Black D
  • Haviland A
  • Sanders S
 et al. 
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Abstract

We estimate wage gaps using nonparametric matching methods and detailed measures of field of study for university graduates. We find a modest portion of the wage gap is the consequence of measurement error in the Census education measure. For Hispanic and Asian men, the remaining gap is attributable to premarket factors--primarily differences in formal education and English language proficiency. For black men, only about one quarter of the wage gap is explained by these same factors. For a subsample of black men born outside the South to parents with some college education, these factors do account for the entire wage gap.

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