The Relative Earnings of Young Mexican, Black, and White Women

This analysis of data from the National Longitudinal Survey of Youth indicates that young Mexican women and young black women earned, respectively, 9.5% and 13.2% less than young white women in 1994. Differences in education appear to be the most important explanation for the Mexican-white wage gap, whereas differences in labor force attachment are the most important determinant of the black-white wage gap. The authors show that accounting for actual labor market experience, rather than simply imputing experience based on years since leaving school, is crucially important in such analyses.