Comparative labor supply of black and white women

Conclusions The presence of young children decreases women’s labor supply as shown by the LFPRs for women with young children (which are always considerably lower than those for women without young children). Also, the number of young children is almost always negatively related to annual hours of labor supplied (significantly so in half the regressions). Black and white women are found to have an inelastic labor supply, but with increasing elasticity from 1969 to 1974. There is a statistically significant difference in the estimated regression coefficients of the labor supply model for black and white married women in 1969 and 1974 in both the arithmetic and logarithmic forms. The husband’s earnings are significantly negatively related to white married women’s annual hours of work in 1974, while the relationship is not significant for black married women. Crosselasticity terms show that white married women decrease their annual hours of work in response to an increase in husband’s earnings to a greater extent than black married women in 1971 and 1974. These results are consistent with the hypothesis that black women do not rely on their husband’s earnings to as great an extent as white women.     

Vacancies,unemployment, and black and white wage earnings: 1956–1983

Utilizing recent developments in the literature on vacancies and unemployment, the effects of changes in the vacancy to unemployment ratio on black and white wage earnings are examined. The primary result argues that black women’s wage earnings are less sensitive to changes in the national vacancy to unemployment ratios than white earnings. Another way of interpreting this result is that black women are not experiencing wage gains when new jobs are created. This finding suggests that black women may not experience increases in earnings if the vacancy to unemployment ratio increases in the future.     

Introduction to Articles on Black Women and Work

Black women are one of the hardest working groups in the country. However, hard work is not always properly rewarded. The existence of wage inequities based on race has been shown to exist (Darity The Journal of Human Resources XVII: 72–91 1982), and black women have not been exempt from its implications. In addition, African American women still experience higher unemployment levels than their white female counterparts. In papers examining black women in the nursing profession, their income and earnings volatility, and inequities in their employment, Richard McGregory, Bradley Hardy, and Linda Loubert provide an overview of where black women stand in the U.S. labor market with respect to work and earnings. While these pieces show that African American women have made significant inroads into the American labor market there is still further to go.     

Literacy Skills and Earnings: Race and Gender Differences

This study examines differences in returns to literacy skills on earnings of black and white men and women. Literacy skill is a composite measure of three scales: reading comprehension, document literacy (the ability to locate and use information in, say, tables and graphs), and mathematics proficiency. Using data from the National Adult Literacy Survey (NALS), we estimate earnings determination models separately for each racial/gender group. Our findings show that the effect of literacy on earnings varies by race and gender. Literacy skills favorably rewarded black men relative to black women and white men and women, net of education and other relevant variables. More importantly, literacy completely explained the effect of a high school diploma and some college on earnings of black men. We conclude that the economic importance of literacy skills is particularly salient for less-educated black men.     

Arrival Cohort, Assimilation, and the Earnings of Caribbean Women in the United States

Utilizing data on U.S.-born and Caribbean-born black women from the 1980–2000 U.S. Censuses and the 2000–2007 waves of the American Community Survey, I document the impact of cohort of arrival, tenure of U.S. residence, and country/region of birth on the earnings and earnings assimilation of black women born in the English-, French-, and Spanish-speaking Caribbean. I also test whether selective migration accounts for earnings differences between U.S.-born and Caribbean-born black women in the United States. I show that almost all arrival cohorts of Caribbean women earn less than U.S.-born black women when they first arrive in the United States. However, over time the earnings of early arrival cohorts from the English- and French-speaking Caribbean are projected to surpass the earnings of U.S.-born black women. Indeed, this crossover is most pronounced for women from the English-speaking Caribbean. In models that account for selective migration by comparing the earnings of Caribbean women to U.S.-born black women who have moved across states since birth, I show that more time is required for early arrival cohorts from the English- and French-speaking Caribbean to surpass the earnings of U.S.-born black internal migrants. Women from the Spanish-speaking Caribbean do not seem to experience earnings growth as their tenure of U.S. residence increases. In summary, the findings suggest that selective migration is an important determinant of earnings differences between U.S.-born black women and black women from the Caribbean.     

Trends in relative earnings gains by black women: Implications for the future

The current article argues that the labor pattern of black women may be properly viewed within a trisectoral segmentation of the labor market. A three-phase characterization of their relative earnings behavior over the postwar period is implied. Empirical evidence lends support to the basic hypothesis of an acceleration in black female earnings growth, relative to white males and females, during the intermediate post-1964 period, but a decline thereafter. The quadratic trend model and its logistic transformation were found to fit the earnings patterns rather well. Projections based upon these models suggest that present trends do not bode well for major gains in black female median earnings relative to those of white men and women in the near future.     

Black women in employment and training programs

This article examines the past experience of women-with a focus on black women-in employment and training programs. In spite of the fact that women have been underrepresented in these programs and often steered toward training in “traditionally female” occupations, they exhibit higher postprogram earnings gains than males. Overall, however, the training provided has at best shifted women into low-wage clerical fields with average annual earnings barely above the poverty level. Therefore, these programs-taken alone-can not be expected to have a major impact on an important problem facing blacks: welfare dependency.     

Effects of community,family, and education on earnings of black and white men

Summary The primary purpose of this paper was to determine the effect of background on the education and earnings of black and white men.It was largely motivated by a desire to quantify the extent to which past discrimination against Blacks, resulting in lower achievement, inhibits the progress of individuals today in a somewhat more benign environment.It has demonstrated that both community and family background factors are important in determining the levels of education and earnings of black and white men.The community effects for Blacks operate largely through their moving into more integrated neighborhoods, so that many positive community externalities are apparently not available to families in predominantly black middle-class neighborhoods.While the effects of father’s education, city origin, and community income are comparable between Blacks and whites, white men’s education is more affected by number of siblings, family income, and age of 1968 head of household than is black men’s education.The relative sizes of the coefficients of these latter variables are consistent with steeper age-earnings profiles for older white men than older black men and higher prices paid for investing in children by black parents.     

Assessing black progress: employment,occupation, earnings,income, poverty

Farley discusses changes in employment, occupation, earnings, income, and poverty among US blacks. Among black men, there has been a persistent rise in unemployment since 1960. By the early 1980s, 1 black man out of 8 had dropped out of the labor force, compared to 1 in 20 white men. Some contend that many black men lack the skills to be employed or have personal habits and criminal records which make them unacceptable to employers. Others believe that the expansion of federal welfare programs offers attractive alternatives to men who have limited earnings potential. Still others stress that blacks are concentrated within cities, while the growth of employment is occurring in suburbs. Among those blacks over age 54, labor force participation has declined because of improved Social Security benefits, better private pensions, and the greater availability of Supplemental Security Income. The employment of young blacks compared to whites has deteriorated since 1960. For both races, there has been a steady rise in the employment of women. The recent increases, however, have been great for whites. By the early 1980s, white women caught up with black women in terms of employment. Unlike the indicators of employment itself, there is unambiguous evidence that the occupational distribution of employed blacks has been upgraded and is gradually becoming similar to that of whites. Findings from many studies show that blacks once earned much less than similar whites, but this racial difference has declined among men and has nearly disappeared among women. The proportion of blacks impoverished fell sharply in the 1960s, reaching a minimum of 30% in the early 1970s. Since the early 1970s, blacks have made few gains. The proportion impoverished actually increased and the ratio of black-to-white family income declined. The fact that the earnings of black males are no longer rising faster than those of whites and that there is no longer a migration from southern farms to cities plays a role, but changes in family structure are also important. At all dates, poverty rates have been high and income levels low in families headed by women. In 1984, for example, 52% of the black families with a woman as head of household were below the poverty line, compared to 15% of the black married-couple families. While similar trends are occurring in white families, there has been a sharper increase in the proportion of blacks living in these female-maintained families which have high poverty rates.     

Residential location and the earnings of African American women

In comparing the earnings of African American women to three reference groups—white women, African American men, and white men—three principal findings emerge. First, African American women residing in the suburbs are worse off than any other suburban group. Second, central city African American women are worse off than any other group of central city residents. Third, while central city residence imposes a statistically significant earnings penalty on men of both races, no such penalty is found for African American or white women. Therefore, African American women will enjoy no earnings advantage if they move to the suburbs. This finding underscores the importance of including women in studies of residential location and the socioeconomic status of African Americans. A narrow focus on male data to inform policy is clearly insufficient.     

The vintage schooling hypothesis and racial differences in earnings and on-the-job training: A longitudinal analysis

Why do younger black males earn more relative to whites than do older black males? The literature offers two competing explanations. Smith and Welch suggest this pattern is evidence that employers are rewarding the improved skills of more recently, better-educated blacks. Lazear, and Duncan and Hoffman suggest that the pattern is the result of employer discrimination that prevents blacks from entering occupations that offer on-the-job training (OJT) and wage growth with experience. The competing views are tested by using the National Longitudinal Survey of Labor Market Experience of Young Men to compare black and white earnings and regression estimates in two periods. Regression results for 1968 and 1978 indicate that, as the NLS cohort aged, only white males had an age-earnings profile exhibiting the positive effect of OJT. Over the period, education coefficients decreased for both groups with the reduction greatest in black coefficients. This suggests that the earnings effect of education is not as stable for blacks as it is for whites over the life cycle. Black-white earnings ratios were approximately the same in both periods. The results reported here support the explanations offered by Lazear and by Duncan and Hoffman, implying that policies focusing on eliminating racial differences in educational quality may be insufficient in improving the relative position of blacks over the life cycle.     

Explaining post-1964 earnings gains by black women: Race or sex?

This article examines the earnings position of black females relative to white males for the post-1964 period. It finds that over 70 percent of the 1965–78 growth in black female relative median earnings remains after controlling for previous trends, education, and cyclical and labor supply changes. For full-time, year-round workers, the post-1964 trend independently implies a growth rate about 50 percent higher than that actually observed. Approximately one-half of the gains are attributable to race and the rest to the interaction of race and sex. The study finds no support for the censoring hypothesis that allocates a substantial portion of the growth to labor supply decreases. While it suggests occupational mobility to be nonextraneous in the earnings equation, the author argues that the black female now faces a mobility constraint more formidable than previously.     

Employment and Earnings: A Case Study of Urban Detroit

This paper investigates the roles of manufacturing employment, neighborhood poverty, and family structure in determining wages among Detroit, MI workers, just prior to the current economic crisis. Employment in manufacturing has been crucial for blacks and whites: 39% of black and of white men in the Detroit metropolitan area worked in manufacturing in 2000. Regression analysis in this paper estimates employment in manufacturing raised wages 15.8% for all workers in the metropolitan area, 24.4% for blacks and 13.8% for whites. It finds a higher wage penalty (4.7%) for blacks in non-manufacturing industries than is found when manufacturing sector jobs are included (2.6%). Wage returns to education were greater in the non-manufacturing employment sector, especially for blacks. Residence in the poorest central city neighborhoods reduced wages significantly for white manufacturing and non-manufacturing workers. Its coefficient was insignificant for black workers. Gender and marital status effects on wages differed between blacks and whites in magnitude: White women suffered a larger penalty for their sex than black women (22.6 versus 9.6%) yet black men enjoyed a greater return to marriage than white men (27.5 versus 25.0%). Controlling for manufacturing reduced the gender wage gap and the returns to marriage for men. These findings suggest greater accessibility for women; and lower returns to marriage in non-manufacturing sectors. Among employed blacks access to manufacturing jobs has been their main source of decent wages. The adverse effects of the industry??s job loss in the 1980s and 1990s impacted all Detroit residents. Other high wage industries have employed relatively few blacks, have not paid them well; and have suffered job loss and slow growth over the period. Education could have raised wages for non-manufacturing workers, but not as much as access to manufacturing jobs. Today as in 2000, Detroit??s residents desperately need job creation or relocation to the central city; and job training and anti-discrimination policy enforcement throughout the metro-area. All of these would be necessary to offset job loss and reduce inequality and poverty in Detroit. The extent to which blacks will benefit from 2010?C11 improvements in manufacturing employment in Detroit depends upon whether private companies and the state provide equal access to the jobs and the training new technologies require.     

Racial employment and earnings differentials: The impact of the Reagan Administration

Numerous authors have considered the time paths of black/white employment and earnings differentials. Some have dealt with significant policy change impacts such as the 1964 Civil Rights Act. This study reports evidence concerning the impact of Reagan administration policy changes. The major drawback to the study is, of course, that the administration’s total impact will no doubt not be felt for years. Regardless, using U. S. Census data through 1984, it was found that the administration had either a mixed effect (relative employment) or no effect (relative income), leaving the decaying position of blacks in the labor market little changed.     

Black women and labor force participation: An analysis of sluggish growth rates

The labor force participation rate of black women has not increased as fast as that of white women in spite of the fact that black females have the characteristics economists have found most encourage participation. Also black women at all socioeconomic levels have more positive attitudes towards labor market activity. The explanation for the failure for their work rates to grow as fast as those of white women appears to be inadequate employment opportunities for black women from lower socioeconomic groups. Education in or of itself, however, is not the solution to the problem because education yields lower returns to black women with limited schooling than is true for comparable whites. Any strategy devised to solve these employment inequities must address the low relative demand for these workers.     

The Wage Gap between Men and Women in Botswana's Formal Labour Market

This study looks at the wage gap between men and women in Botswana'sformal sector labour market. The wage gap is decomposed usingOaxaca's decomposition methodology. This method breaks downearnings differences into two parts: one part is due to differencesin characteristics between men and women, while the other partis due to differences in rewards to those characteristics inthe labour market. The latter has often been interpreted asa measure of the extent of the discrimination against women.The results of the decomposition exercise shows that there isrelatively less discrimination in the public sector, while inthe private sector discrimination against women is a major factorexplaining the differences in their earnings.     

Gender Discrimination and Worker Selectivity: A Comparison of the Self-employed and Wage Earners

This study compares the size and nature of the gender earnings differentials for the self-employed and wage earners in Korea, taking into account the workers’ self-selection of each employment type. The two-stage estimates of the earnings equation, corrected for worker selectivity, are used to decompose the gender earnings differentials into productivity-related and discriminatory factors. Our results suggest that the size of the gender earnings gap is larger in the wage sector than in the self-employment sector, but not by large margin, and so is the discrimination effect when not controlled for worker selectivity. With worker selectivity controlled, the discrimination effect is greatly intensified in the wage sector, while it becomes not significant in the self-employment sector. These findings imply that the observed gender earnings gap in the wage sector is largely ascribed to discrimination against women, while the gender earnings gap in the self-employment sector is mostly due to productivity difference that, in part, is caused by worker selectivity.     

Race and sex differences in the effects of early unemployment on wages

Youth unemployment is shown to have significant depressing effects on black long-run earnings over and above the loss in work experience which accompanies unemployment. Estimates were similar for men and women, showing that for each week of unemployment black youth incurred early in their work careers, wages were reduced by about one half a percentage point five years later. A six month bout with unemployment in 1979 was related to a 13 percent drop in wage rates five years later. For white youth, joblessness, but not unemployment per se, had a significant negative impact on subsequent wage rates.     

Racial Earnings Disparities and Family Structure

One explanation for the widening of racial earnings gaps among family heads during the 1980s is that black families were increasingly headed by females during that period. This explanation is tested using data on black and white family heads in 1976 and 1985 from the Institute for Research on Poverty's Current Population Survey. Log-earnings equations, corrected for selection bias and for the endogeneity of labor force participation, are estimated for blacks and whites in 1976 and 1985. If the impact of rising female-family headship on labor force participation is ignored, one finds support for the family structure explanation. But support for alternative explanations is also found. There are substantial impacts of within-race gender discrimination and of market racial discrimination. When the endogeneity of family structure is taken into account, further support is found for the view that endowment differences only explain a modest portion of the rising gap in earnings between black and white family heads.     

Racial steering in urban housing markets: A review of the audit evidence

A secondary analysis of thirty-six fair housing audits conducted between 1974 and 1987 reveals that racial steering has been a widespread, consequential phenomenon in many urban housing markets during the last decade. It is difficult from extant work to assess precisely its incidence nationally in the home sales sector because sites reporting such data have had atypically active fair housing enforcement efforts. It appears, however, that selective commentary by agents has been practiced as much if not more than differential patterns of home-showings. The consequence of this steering rarely has been to limit the number or concentration of geographic alternatives available to black auditors. Nor have all their options in predominantly white communities typically been precluded. Rather, steering in the sales sector most often has constituted a failure to show white auditors options in areas (and school districts) with nontrivial proportions of minority residents, and a propensity to show black auditors disproportionate numbers of homes in areas currently possessing or expected to possess significant proportions of minority residents. Limited evidence suggests that steering has occurred often in the rental apartment sector, although its consequences have yet to be ascertained in a systematic fashion. Implications of the findings for racial stability in neighborhoods and for fair housing policy are discussed.