Racial Disparities in Job Finding and Offered Wages

Roland G. Fryer, Jr., Devah Pager and Jörg Spenkuch

Journal of Law and Economics, 2013, vol. 56, issue 3, 633 - 689

Abstract: The extent to which discrimination can explain racial wage gaps is one of the most divisive issues in the social sciences. Using a newly available data set, this paper develops a simple empirical test that, under plausible (but not innocuous) conditions, provides a lower bound on the extent of discrimination in the labor market. Taken at face value, our estimates imply that differential treatment accounts for at least one-third of the black-white wage gap. We argue that the patterns in our data are most naturally rationalized through a search-matching model in which employers statistically discriminate on the basis of race when hiring unemployed workers but learn about their marginal product over time.

Date: 2013
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Working Paper: Racial Disparities in Job Finding and Offered Wages (2011)
Working Paper: Racial Disparities in Job Finding and Offered Wages (2011)
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