The Determinants of Perceived Underpayment: The Role of Racial Comparisons

Mary Hampton and John Heywood

Review of Social Economy, 1999, vol. 57, issue 2, 141-155

Abstract: Using a sample of young employed physicians, the determinants of perceived underpayment are examined for both white and minority workers. The examination confirms the importance of earnings comparisons within racial groups but also finds a substantial role for comparisons between racial groups. Workers apparently perceive racial earnings differences (as measured by economists) and build them into an assessment of the fairness of their labor market treatment. This finding emerges for both whites and minorities and occurs in a sample in which the pattern of earnings indicates a modest minority earnings premium.

Keywords: comparison income; perceived underpayment; measured discrimination; young physicians (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (10)

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DOI: 10.1080/00346769900000032

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