Our study evaluates and extends existing wage decomposition methodologies that seek to measure the contributions of endowments, pure wage discrimination, and job segregation. Of particular interest is the model of hierarchical segregation in Baldwin, Butler, and Johnson (2001). We employ data...

Probit and logit models typically require a normalization on the error variance for model identification. This paper shows that in the context of sample mean probability decompositions, error variance normalizations preclude estimation of the effects of group differences in the latent variable...

The Federal criminal sentencing guidelines struck down by the U.S. Supreme Court in 2005 required that males and females who commit the same crime and have the same prior criminal record be sentenced equally. Using data obtained from the United States Sentencing Commission's records, we examine...

This paper develops a theoretical model of optimal schooling levels where ability and family background are the central explanatory variables. We derive schooling demand and supply functions based on individual wealth maximization. Using NLSY79 data we stratify our sample into one-year FTE work...