Explaining Variations in the Hourly Wage Rates of Urban Minority Group Females

Raymond J. Struyk

Journal of Human Resources, 1973, vol. 8, issue 3, 349-364

Abstract: A theory to explain the variation in earned incomes of minority group females in a centralized urban area is developed and tested. The theory posits the number of hours worked as a determinant of the hourly wage rate, given employers' preference for full-time workers. From a standard labor force participation model, the importance of the wage rate as a determinant of hours worked is derived, thus establishing the simultaneity of hours worked and the wage rate. The relations are verified by ordinary least squares but not by two-stage least squares estimates. The explanation for the break in joint determinancy of hours worked and wages rests in the inability of these women to exercise work-choice because of severe family income constraints.

Date: 1973
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Persistent link: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:8:y:1973:i:3:p:349-364

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