ERIC Number: ED181273
Record Type: RIE
Publication Date: 1979-Oct
Reference Count: 0
Pay Premiums for Economic Sector and Race: A Decomposition.
Daymont, Thomas N.
Using data from the older men's file of the National Longitudinal Surveys, two issues related to the labor market implications of dual economy theory were examined: variations in rates of pay among economic sectors (competitive, monopoly, and public) and variation in relative opportunities for blacks across sectors. The primary analytical problem was to decompose the difference in the mean level of pay in any two sectors into the following components: human capital composition, unionization, occupational skill requirements, and a residual. Analagous decompositions were made for racial (white/black) differences in pay. The results of the decomposition suggest that the primary factors producing a monopoly sector pay premium are (1) a greater ability and willingness to pay high wages due to greater economies of scale, market and political power, and a greater interest in developing a stable work force and (2) higher levels of unionization. In contrast to several previous studies, the relative disadvantages of black men were found to be somewhat greater in the competitive sector than in the monopoly sector. A significant portion of the disadvantage is due to the allocation of blacks, relative to whites with similar characteristics, to jobs requiring less skill. (YLB)
Descriptors: Blacks, Comparative Analysis, Economic Research, Employment Opportunities, Employment Qualifications, Human Capital, Human Resources, Industrial Personnel, Industry, Job Skills, Labor Economics, Labor Force, Longitudinal Studies, Males, Middle Aged Adults, National Surveys, Racial Discrimination, Unions, Wages
Center for Human Resource Research, College of Administrative Science, The Ohio State University, 5701 N. High Street, Worthington, OH 43085 ($0.80)
Publication Type: Reports - Research; Speeches/Meeting Papers
Education Level: N/A
Sponsor: Employment and Training Administration (DOL), Washington, DC.
Authoring Institution: Ohio State Univ., Columbus. Center for Human Resource Research.
Note: An earlier version of this paper was presented at the American Sociological Association annual meeting (Boston, Massachusetts, August, 1979)