Explaining Black-White Wage Convergence, 1940-1950: The Role of the Great Compression

Robert Margo

No 44, NBER Historical Working Papers from National Bureau of Economic Research, Inc

Abstract: The "Great Compression" of the 1940s produced a substantial narrowing in wage differentials in the United States. This paper examines the role of the Great Compression in fostering black-white wage convergence in the 1940s. Using data from the 1940 and 1950 census public use samples, I show that between half and two-thirds of black white wage convergence at the sample means can be attributed to shifts in wage structure associated with the Great Compression. I also demonstrate that, by (temporarily) boosting the incomes of black parents. the Great Compression led to greater increases in schooling levels among black teens between 1940 and 1950 than would have occurred otherwise.

JEL-codes: N32 (search for similar items in EconPapers)
Date: 1993-03
Note: DAE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published as Industrial and Labor Relations Review, vol. 48, April 1995, pp. 470-481

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