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

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. © 2006 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.