Work

Wage discrimination over the business cycle

Year: 2013

Type: article

Abstract: Using CPS data from 1979–2009 we examine how cyclical downturns and industry-specific demand shocks affect wage differentials between white non-Hispanic men and women, Hispanics and non-Hispanic whites, and African-Americans and non-Hispanic whites. Women’s relative earnings are harmed by negative shocks; the wage disadvantage of African-Americans drops with negative shocks, while the impact on Hispanics’ wages is unclear. A theory of job search suggests two opposite-signed mechanisms that affect these wage differentials. It suggests greater absolute effects among job-movers, which is verified using the longitudinal component of the CPS. Jel codes J7, E3

Source: IZA Journal of Labor Policy

DOI: 10.1186/2193-9004-2-7

Authors: Jeff E Biddle, Daniel S Hamermesh

Institutions: Michigan State University, National Bureau of Economic Research, Royal Holloway University of London, The University of Texas at Austin

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities, Gender equality

Open Access status: hybrid

Estimated APC paid: $1,105