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ERIC Number: EJ816646
Record Type: Journal
Publication Date: 2008
Pages: 53
Abstractor: As Provided
Reference Count: 32
ISSN: ISSN-0022-166X
Racial Labor Market Gaps: The Role of Abilities and Schooling Choices
Urzua, Sergio
Journal of Human Resources, v43 n4 p919-971 Fall 2008
This paper studies the relationship between abilities, schooling choices, and black-white differentials in labor market outcomes. The analysis is based on a model of endogenous schooling choices. Agents' schooling decisions are based on expected future earnings, family background, and unobserved abilities. Earnings are also determined by unobserved abilities. The analysis distinguishes unobserved abilities from observed test scores. The model is implemented using data from the NLSY79. The results indicate that, even after controlling for abilities, there exist significant racial labor market gaps. They also suggest that the standard practice of equating observed test scores may overcompensate for differentials in ability. (Contains 11 tables, 9 figures and 42 footnotes.)
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Publication Type: Journal Articles; Reports - Research
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A