Meritocracy in America: An Examination of Wages Within and Across Occupations

John Cawley, James Heckman and Edward Vytlacil

No 6446, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In The Bell Curve, Herrnstein and Murray argue that the U.S. economy is a meritocracy in which differences in wages (including differences across race and gender) are explained by differences in cognitive ability. In this paper we test their claim for wages conditional on occupation using a simultaneous model of occupation choice and wage determination. Our results contradict Herrnstein and Murray's claim that the U.S. labor market operates only on meritocratic principles.

Date: 1998-03
Note: LS
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Published as Cawley, John, James Heckman and Edward Vytlacil. "Meritocracy in America: An Examination of Wages Within and Across Occupations." Industrial Relations, July 1999, 38(3): 250-296.

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