ERIC Number: ED402144
Record Type: Non-Journal
Publication Date: 1994-Jun
Reference Count: N/A
Rural Wages and Returns to Education: Differences between Whites, Blacks, and American Indians. Upjohn Institute Staff Working Paper 94-27.
Rural workers earn lower wages than nonrural workers, a difference attributed to lower returns to worker characteristics. This paper examines racial and gender differences among rural workers and provides evidence of the structure of wages faced by American Indians. Data were drawn from the 1987 National Medical Expenditures Survey (NMES) and the NMES-Supplement of American Indians and Alaska Natives (living on or near a reservation or tribal area). The present study included data for nonmetropolitan residents aged 22-54 who were not self-employed. Males included 975 American Indians, 1,094 Whites, and 238 Blacks; females included 1,146 American Indians, 1,275 Whites, and 347 Blacks. Within each gender group, racial differences are summarized for labor force participation, educational attainment, percentage in managerial occupations, and average wage. Average hourly wages were $10.20 for White males, $8.09 for American Indian males, $7.38 for Black males, $7.09 for White females, $6.38 for Black females, and $6.31 for American Indian females. Regression analysis revealed that only 14 percent of the wage difference between White and American Indian males is unexplained by personal and job characteristics, while 66 percent of the difference between White and Indian females is unexplained. Comparing Whites and Blacks, 44 percent of the wage difference between males and 97 percent of the difference between females is unexplained. In rural areas, Whites and American Indians receive very small wage returns to education, Blacks suffer disproportionately severe penalties for low educational attainment, and females of all races enjoy much higher returns to education than do males. Contains 26 references and statistical tables. (Author/SV)
Publication Type: Reports - Research
Education Level: N/A
Authoring Institution: Upjohn (W.E.) Inst. for Employment Research, Kalamazoo, MI.