Racial Wage Gaps and test Score Differences: Incentives vs. Pre-Market Factors

We use a simple model of statistical discrimination to empirically disentangle two different sources of racial wage inequality: differences in the distribution of pre-market factors that affect human capital, and differences in incentives to acquire human capital when young. We show how the equilibrium restrictions from the model help us identify such factors. We estimate the parameters of the model using NLSY data on wage, education, and AFQT test scores.

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Year of publication:	2004
Authors:	Norman, Peter ; Moro, Andrea
Institutions:	Society for Economic Dynamics - SED
Subject:	Statistical Discrimination \| Wage inequality

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Series:	2004 Meeting Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Society for Economic Dynamics 2004 Number 248
Classification:	J70 - Discrimination. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005069584