Cycles of Wage Discrimination

Jeff Biddle and Daniel S. Hamermesh

No 17326, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: E29 J71 (search for similar items in EconPapers)
Date: 2011-08
New Economics Papers: this item is included in nep-lab, nep-lma and nep-mac
Note: LS
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Citations: View citations in EconPapers (3)

Published as "Wage discrimination over the business cycle." Jeff E Biddle and Daniel S Hamermesh. Journal of Labor Policy, 2013 2:7

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Working Paper: Cycles of Wage Discrimination (2011)
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