A note on the apparent constancy of the racial wage gap in New Jersey manufacturing, 1902 to 1979

Conclusion This discussion around the black-white wage gap will continue. Inadequate data alone will make it difficult to distinguish recent fluctuations and once-only changes from long-term trends. For those who believe the racial wage gap is narrowing, the 1902 New Jersey survey of blacks in manufacturing presents a puzzle. Why at the outset of black entry into this sector of the economy do we find a racial wage gap as narrow as the one observed for New Jersey manufacturing in 1969, a year at the top of the post-World War II business cycle? Michael Reich argues that “in every region but the South the relative income of non-white males shows substantial cyclical fluctuations… but shows no upward trend over time.” The baseline established by the 1902 New Jersey survey is compatible with Reich’s conclusion.     

Becker’s utility approach to discrimination: A review of the issues

Conclusion In general, most studies have been unable to confirm the predictions of the Becker utility approach to discrimination by employers and employees. This lack of verification would seem to indicate that the observed wage differentials are generated by a different or more complex process. However, such a strong statement is premature in view of the measurement problem that has been present in most studies. Becker’s model is a characterization of how individual employers and employees behave in the market. Empirical testing of Becker’s model requires detailed information about the degree and level of contact between the races, the wage rates paid to each race, skills of each worker, and the manner of employment and placement of each race. Invariably the lack of such detailed firm data, particularly wage rates, forces researchers to use aggregative data of income or earnings averages and occupation of workers employed within a state or broadly defined industry in order to generalize how firms behave in the market. The necessity of using such data, however, results in a dichotomy between the original parameters in Becker’s model and the data utilized. Clearly the lack of a significant association between the data utilized and the parameters specified in Becker’s model undermines the credibility of such empirical testing. The empirical analysis on the implications of Becker’s theory of discrimination has left a wide variety of unsettled questions and much remains to be done.     

The Impact of Racial Discrimination on the Early Career Outcomes of Young Men

The NLSY dataset is utilized to measure the extent of employer wage discrimination between white and black males during their first 5 years of post-school employment. We look at the respondent’s first job and the jobs 1 and 5 years after school completion. Oaxaca wage decompositions are employed to gauge the effect of discrimination. Consistent with our hypothesis, we find that the discrimination component of the wage gap falls over time. For the first job out of school the unexplained wage gap between blacks and whites is 35%. By year 5, the unexplained component falls to about 13%. Thus, while discrimination continues to play a role in explaining the white–black wage gap over time, its impact decreases as time in the labor market increases.

The causes and impact of the african debt crisis

This article examines the African debt crisis. It focuses on factors leading to the accumulation of the debts and their impact on the debtor nations. The significance of the study lies in the fact that the African debt burden presents a gruesome picture of hopelessness. This is reflected by the continent’s massive debt of $230 billion, equivalent to almost three times the continent’s annual export earnings. This is expected to jump to $550 billion by the year 2000. Africa’s crushing debt burden has become one of the most important factors constraining recovery and development. As the United Nations Children’s Fund estimates, one thousand people die each day in Africa because of the debt crisis. The analysis shows that due to the multifaceted nature of the causes of the debt crisis, both creditors and debtors should agree on the options for dealing with the crisis. It further shows that there is the urgency for Africa to tackle its numerous sociopolitico-economic problems. Africa can make real economic progress only when it begins to get on top of its debt crisis.     

Increasing Diversity in Telecommunications Ownership and Increasing Efficiency in Spectrum Auctions by Breaking the Link Between Capital Market Discrimination and FCC Spectrum Auction Outcomes

In Section 309(j)4(D) of the Communications Act, the Federal Communications Commission (“FCC”) is required to increase opportunities for minority groups to participate in the provision of spectrum based services. In Adarand Construction, Inc. v. Pena, the Supreme Court held that race-based government programs were subject to strict scrutiny. That is race-based programs must serve a compelling governmental interest such as remedying past discrimination, and must be narrowly tailored to serve that interest. Against this backdrop, a simple theoretical model is developed that explains the relationship between capital market discrimination and outcomes in FCC spectrum auctions. Given capital market discrimination and all other factors being equal, it is shown that a minority firm has zero probability of winning in an auction for spectrum. In addition, it is proven that, if equal bidding credits are given to all firms, if there is capital market discrimination, and if all other things are equal, the minority firm has a zero probability of winning in a spectrum auction. It is shown that a policy of auctioning spectrum, when there is capital market discrimination, is an inferior policy among policies that can be used to allocate spectrum. Finally, a policy of auctioning spectrum, when there is capital market discrimination, results in an inefficient auction. These theoretical results and the empirical literature on capital market discrimination suggest that the FCC is implicitly discriminating against minorities through its auctioning of spectrum under conditions of discrimination in capital markets. The results imply that race-based programs are necessary/justified in order to increase diversity in telecommunications ownership and increase the efficiency of FCC Spectrum Auctions. Given possible legal remedies, the paper contains a critical “audit”/analysis of the FCC’s lending practices under the FCC’s installment payments. Legislative proposals for creating some new form of credit/installment payment in conjunction with some experienced financial institution(s) are summarized and reviewed.     

Rising black unemployment: Changes in job stability or in employability?

This article analyzes the effects of changes in flows into and out of unemployment on the growing gap between black and white unemployment rates in the 1970s and 1980s. Current Population Survey data show that black workers’ unemployment inflows increased, suggesting that job instability increased. Declining employment opportunities were also implicated, as black workers left unemployment for a job less often in 1987 than in 1971. White women’s situation improved considerably, with lower inflows and higher employment probabilities. Although the effects of declining federal equal employment opportunity (EEO) pressure cannot be detected, these findings are consistent with increasing racial discrimination.     

Employers’ stereotypes and taste-based discrimination

Studies founded on Becker's theory of employers’ taste-based discrimination show that discrimination arises not from “taste” but from “prejudice,” “belief,” and “stereotype.” However whether the “employer” is the source of discrimination remains unanswered. Thus, survey research using employers as a sample is indispensable to address this issue. In this study, we use a unique data set that employers can identify to analyze whether their gender stereotypes are the source of gender discrimination. The analysis showed that employers' strong stereotypes reduced women's proportion in companies. Furthermore, when the employer is a woman, her stereotype strongly influences women's proportion.     

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.     

The 2007 General Elections in Nigeria: An Account of the Politics of Personal Rule in an African Country by a former Presidential Aide

This article is an insider’s account of the vicious political struggles that shaped the April 2007 general elections in Nigeria which were adjudged to be fraudulent. It argues that the form of political struggles that gave rise that election derive from the enthronement of a particularly vicious and violent form of personal rule which is itself a product of Nigeria’s colonial rule and long history of military dictatorship which saw to the concentration of power and resources in the state in the context of the existence of a weak bourgeois class and generalized poverty for the generality of the population. The intrigues and power struggles in Nigeria during its 4th Republic 1999–2007, particularly the power struggle between the country’s President and his deputy are discussed to illustrate the character of Nigerian (and perhaps African) politics. Some suggestions are offered for a more just and stable Nigerian polity.     

Capturing Regional Trade Effects in the Presence of Other Trade Effects: The Impact of the Europe Agreement on Poland’s Imports

This paper investigates the impact of the Europe Agreement on Poland’s imports using econometric models applied to highly disaggregated trade data. This allows other influences on Poland’s trade patterns to be controlled for, specifically the effects of other trade agreements and for the emergence of China. The paper shows that the Europe Agreement had transitory effects on Poland’s imports, but that the scale of the trade effects and the balance of trade creation and diversion effects is sensitive to model specification. The preferred dynamic specification which allows for heterogeneity of time effects across sectors identifies the Europe Agreement to have net trade-creating effects.      

NEA Presidential Address: The role of race-conscious policies in addressing past and present discrimination

The impact of the current recession on the labor market situation of African-Americans highlights their longer-run plight. While there have been signs of improvement, especially during the 1960s, black per capita earnings have fallen despite improvements in their relative wages and occupational standing. Public debate over the recent Civil Rights Bill, the nomination of Justice Clarence Thomas, and the Supreme Court’s Croson decision, has raised again the issue of using race-conscious policies to address past and present discrimination. This article reports on a study of Birmingham, Alabama as a case study. It suggests that a combination of race-neutral and race-conscious approaches may be needed to address the problems blacks continue to face in the United States economy. This article was adapted from the Presidential Address to the National Economic Association, Allied Social Sciences Associations Meetings, January 3, 1992, New Orleans, LA.     

Black Real Estate Professionals’ Perceptions of Career Opportunities: The Economic Detour Redux

This article focuses on black professionals’ perceptions of career opportunities in the real estate industry and discrimination in housing markets. The analysis is based on a national survey of black real estate professionals administered between July and December of 2009. Findings from the article suggest that black real estate professionals adopt a business strategy scholars have referred to as the economic detour. Following this strategy, their business activities focus on a niche market confined to residential real estate transaction with black clientele in relatively segregated neighborhood contexts. The findings from this analysis suggest that this focus has emerged in response to perceptions of institutional discrimination that closes opportunities to black professionals in the broader real estate industry. Recommendations are made to address economic barriers faced by black professionals.     

The economics of socialism as economics of shortage. A critical review

Summary The article is an extended review of J. Kornai’sEconomics of Shortage. Salient feature of this book is a behavioural in place of a decision-theoretic approach to socialist economies. The article discusses central concepts of Kornai’s analysis as hard and soft budget constraints, shortage and slack, taut plans, sellers’ markets. The main hypothesis says that the achievements of socialism, work guarantee and redistribution, bring about soft budget constraints and thus cause shortage. It is argued, however, that existing socialist systems have ample leeway for economic reforms. Review article of J. Kornai, Economics of Shortage, Vol. I and II, North-Holland Publishing Company, Amsterdam and New York, 1980. Pp. XVII + 650. 2-Volume Set Dfl. 170,-.     

Refined racial discrimination: A case study of public employment in a southeastern city

Summary and Conclusion Though the preceding findings are not conclusive, 9 they are strongly supportive of the refined discrimination hypothesis and closely parallel Long’s conclusions in his study of job discrimination in the federal government.     

Race and prosecution expenditures

There has been a steady accumulation of literature on racial differentials in crime and the response of the criminal justice system. A neglected component of societal response to crime has been the volume of prosecution expenditures. This article seeks to repair this neglect by examining state level difference inper capita prosecution expenditures in 1980 using a multiple regression equation. The results show that, holding other factors constant, lower prosecution expenditures are associated with higher percentages of blacks in a state’s population. The relationship of this to discrimination is discussed in terms of England.     

Prediction of injury risks to workers employed in municipalities of the Udmurt Republic

The article presents a technique and mathematical model to predict injury risks to workers of the Udmurt Republic’s municipalities.     

Statistical Discrimination in Labor Markets: An Experimental Analysis

This article reports results from controlled laboratory experiments designed to study second‐moment (that is, risk‐based) statistical discrimination in a labor market setting. Since decision makers may not view risk in the same way as economists or statisticians (that is, risk 5 variance of distribution), we also examine alternative measures of risk: the support of the distribution and the probability of earning less than the expected (maximum) profits for the employer. Our results indicate that employers made statistically discriminatory wage offers consistent with loss aversion in our full sample (though the result is driven by the male employer subsample). If one can transfer these results outside of the laboratory, they indicate that discrimination estimates based only on first‐moment (mean‐based) discrimination are biased. The public policy implication is that efforts and legislation aimed at reducing discrimination of various sorts face an additional challenge in trying to identify and limit relatively hidden, but significant, forms of statistical discrimination.     

Rural employment and rural-urban differences in employment in Zaire: A comparative perspective

This article provides evidence on the extent of de-agrarianization, the nature of rural employment, and rural-urban differences in employment in Zaire. The composition of employment by industry is examined using data from Zaire’s 1984 Census. Increased schooling was associated with a greater propensity to be involved in nonagricultural employment. Since 1990, Zaire’s chronic economic crisis has become acute and is intertwined with the political crisis resulting from President Mobutu’s resistance to popular calls for democratization. In these circumstances, de-agrarianization is effectively put on hold. Nonagricultural employment opportunities have diminished considerably, and an increasing proportion of the country’s population is being pushed back to subsistence agriculture. An earlier version of this article was presented at the African Studies Centre-International Labour Organization workshop on “De-agrarianization and Rural Employment,” May 10–12, 1994, Leiden, The Netherlands.     

The theory of bank redlining and discrimination: An exploration

This article addresses a gap in the economic literature on race and credit markets: the theoretical basis of lending discrimination and redlining. It provides a unified model for exploring why discrimination and redlining exist in credit markets. This model is first used to examine three explanations offered by other authors—bigotry, differential risk, and market segmentation. The article then suggests several new explanations of race effects. These emphasize the interlinkage between labor and credit markets; market spillovers due to housing liquidity, refurbishment, and branch location effects; and strategic interaction among lenders.     

Interregional trade, industrial location and import infrastructure

The purpose of this study is to illustrate, with a simple two-region, two-good, two-factor model, how an improvement in one region’s import infrastructure can affect firms’ location decisions and the nature of the trading equilibrium. It is shown that, through improvements in import infrastructure, one region might divert high-tech industries to another region. This effect reduces the incentive to improve import infrastructure.