A Note on School Quality, Educational Attainment and the Wage Gap

Srikanth Ramamurthy and Norman Sedgley ()
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Norman Sedgley: Loyola University Maryland

Eastern Economic Journal, 2019, vol. 45, issue 3, No 4, 415-421

Abstract: Abstract This paper explores the linkage between school quality, educational attainment and the wage gap. In a model of statistical discrimination based on both the quality and quantity of schooling, we show that lower-quality education can, on average, lead to lower human capital accumulation if agents anticipate future labor market discrimination. Because blacks in general have less access to good-quality schools compared to whites, this link provides a novel explanation for the differences in black–white educational attainment and the resulting wage gap.

Keywords: Wage gap; Statistical discrimination; School quality; Human capital choice (search for similar items in EconPapers)
JEL-codes: J24 J71 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1057/s41302-018-00132-1

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