Estimating Counterfactual Densities: An application to Black-White Wage Differentials in the U.S

Donal O'Neill, Olive Sweetman and Dirk Van de gaer

Economics Department Working Paper Series from Department of Economics, National University of Ireland - Maynooth

Abstract: In this paper we use a semi-parmaetric procedure developed by DiNardo et al(1996),to examine the distribution of the racial wage gap in the U.S and to examine the extent to which forces underlying this wage gap vary throughout the distribution. In carrying out our analyses, we focus on recent work by Neal and Johnson who argue that one test score explains much of the average racial wage gap for men. Our resutls show that the wage differential varies significantly throughout the distribution Furthermore Neal and Johnson's conlcusion appears to be driven by forces working at the upper end of the distribution.

Keywords: Counterfactual Densities; Racial Wage Gap. (search for similar items in EconPapers)
Pages: 17 pages
Date: 2000-06
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Persistent link: https://EconPapers.repec.org/RePEc:may:mayecw:n1040600

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