Decomposing Income, Earnings, and Wage Differentials

Jeremiah Cotton
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Jeremiah Cotton: University of Massachusetts, Boston

Sociological Methods & Research, 1985, vol. 14, issue 2, 201-216

Abstract: A reformulation of the widely used method for decomposing income, earnings, and wage differentials is undertaken in this article. This new formula is derived from the assumptions of the theory of discrimination that has motivated most of the empirical work on the subject. Unlike previous the decompositions, the method presented here yields separate terms representing the monetary advantage discrimination confers on whites and the monetary disadvantage to blacks.

Date: 1985
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Persistent link: https://EconPapers.repec.org/RePEc:sae:somere:v:14:y:1985:i:2:p:201-216

DOI: 10.1177/0049124185014002005

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