The impact of cognitive skills on the distribution of the black-white wage gap |
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| Institution: | 1. Economics Dept., National University of Ireland Maynooth, Maynooth, Co. Kildare, Ireland and Research Associate NIRSA, NUI Maynooth, Ireland;2. Ghent University, Hoveniersberg 24, B-9000, Gent, Belgium;1. Department of Economics, University of Pennsylvania, 3718 Locust Walk, Philadelphia, PA 19013, United States;2. Federal Reserve Bank of Richmond, 701 E. Byrd Street, Richmond, VA 23219, United States;1. Faculty of Economics and Business, University of Groningen, The Netherlands;2. University of Liverpool Management School, University of Liverpool, United Kingdom;3. UCD School of Business and Geary Institute, University College Dublin, Ireland;1. Department of Philosophy, University of South Florida, Tampa, FL 33620, United States;2. Department of Philosophy, Georgetown University, Washington, DC 20057, United States |
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| Abstract: | In this paper we use a semi-parametric estimation procedure to examine differences in the distribution of wages for black and white male workers in the US. In keeping with recent studies we find that differences in cognitive skills are an important determinant of the black-white wage gap and can explain almost the entire male racial wage gap among high wage workers. However, we find that equalising the distribution of cognitive skills will be less successful in reducing this gap at the lower end of the distribution. |
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