Cycles of Wage Discrimination

Jeff Biddle and Daniel Hamermesh

No 5945, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Using CPS data from 1979-2009 we examine how cyclical downturns and industry-specific demand shocks affect wage differentials between white non-Hispanic males and women, Hispanics and African-Americans. Women's and Hispanics' relative earnings are harmed by negative shocks, while the earnings disadvantage of African-Americans may drop with negative shocks. Negative shocks also appear to increase the earnings disadvantage of bad-looking workers. A theory of job search suggests two opposite-signed mechanisms that affect these wage differentials. It suggests greater absolute effects among job-movers, which is verified using the longitudinal component of the CPS.

Keywords: search models; women; minorities; beauty (search for similar items in EconPapers)
JEL-codes: E29 J71 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2011-08
New Economics Papers: this item is included in nep-bec, nep-hme, nep-lab, nep-lma, nep-ltv and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published - published as 'Wage discrimination over the business cycle' in: IZA Journal of Labor Policy, 2013, 2:7

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Working Paper: Cycles of Wage Discrimination (2011)
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