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The Costs of Employment Segregation: Evidence from the Federal Government under Wilson

Abhay Aneja and Guo Xu

Institute for Research on Labor and Employment, Working Paper Series from Institute of Industrial Relations, UC Berkeley

Abstract: We link personnel records of the federal civil service to census data for 1907-1921 to study the segregation of the civil service by race under President Woodrow Wilson. Using a difference-indifferences design to compare the black-white wage gap around Wilson’s presidential transition, we find that the introduction of employment segregation increased the black wage penalty by 7 percentage points. This gap increases over time and is driven by a reallocation of already-serving black civil servants to lower paid positions. Our results thus document significant costs borne by minorities during a unique episode of state-sanctioned discrimination.

Keywords: Social and Behavioral Sciences; segregation; federal segregation; racial earnings inequality; civil service; Woodrow Wilson; public policy; discrimination (search for similar items in EconPapers)
Date: 2020-12-02
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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