Black immigrants in the U.S. labor market: An earnings analysis

This article investigates the existence and sources of earnings differentials between black Americans and black immigrants, and between black and nonblack immigrants. Employing the Public Use Sample of the 1980 census, the gross earnings differentials between black immigrants and black Americans are estimated to be 8.7 percent in favor of Americans (i.e., Americans earn 8.7 percent more than immigrants). About 2 percentage points and 6.7 percentage points of the gross differential are, respectively, due to differences in average characteristics and in returns to the characteristics. The gross differential between black and nonblack immigrants is 22.1 percent in favor of nonblack, of which 13.8 percentage points are due to differences in average characteristics and 8.3 are due to differences in returns to characteristics.     

Trends,prospects, and strategies for black economic progress

As we approach the closing years of the 1980s, it is clear that, for better or worse, the focus of the struggle for black equality is shifting from traditional civil rights issues to economic development. And although people often debate how best to remedy some of the black community’s most persistent economic problems (for example, high unemployment and the narrowing, but still wide, income gap between blacks and whites), few people have attempted a dispassionate analysis of the broad scope of public and private economic options facing blacks. Too often, the debate is polarized by arguments either for increasing governmental assistance or for almost totally eliminating it. In this article, noted economist Andrew Brimmer strikes a much-needed balance. First, he scrutinizes the trends for blacks (and whites) regarding income and participation in the labor market. Then, instead of painting a picture in pure black and white, he suggests a blending of strategies, some calling for less reliance on the federal government, others requiring a strengthening of the nation’s wavering commitment to affirmative action.     

The Scholarly Status of Blacks in the Economics Profession: Have the National Economic Association and the Review of Black Political Economy Mattered?

This paper considers whether the National Economic Association and its journal the Review of Black Political Economy have enhanced the scholarly status of black economists. A bibliometric analysis reveals that while the typical black economist has never published in the Review of Black Political Economy, the share of black economists publishing in the Review of Black Economy approximates the share of all articles published on the economic and political economy of race by black economists, and the share of articles published in the Review of Black Political Economy by black economists appears higher than typical journals in economics—particularly for black economists employed at Historically Black Colleges and Universities. We also find that similar to other economics journals non-black economists dominate the share of published articles, and publications in the Review of Black Political Economy appear to be consistent with Lotka’s Law of scientific productivity suggesting that the journal is a standard outlet for research no different from any other science journal. Our results imply a plausible counterfactual that if the National Economic Association and Review of Black Political Economy did not exist, the scholarly status of blacks in the economics profession would have been lower than currently observed.     

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.     

Federal agricultural policies: Do black farm operators benefit?

Findings of this study support the contention that benefits from federal agricultural programs accrue primarily to a few very large producers while small producers receive only minimal amounts, and black producers, even less. Not only does this study confirm the belief that, as a whole, black farmers receive only a very thin slice of the “benefit pie” but it makes clear the fact that their individual share is much smaller than their white counterparts’. Although low product volume is an obvious and often cited factor contributing to this inequity, these findings indicate that another very important factor is low program participation. Underparticipation by black farm operators is primarily attributed to racial discrimination against blacks, the negative attitude of many black farm operators toward government programs, failure of some to access available information, and poor decision-making skills of others.     

Economics Faculty Research at Teaching Institutions: Are Historically Black Colleges Different?

This paper examines the difference in research output of economics departments at historically black colleges and universities (HBCUs) and non-HBCUs that are teaching institutions. We also examine the causal relationship between economics faculty research and the number of an institution's baccalaureate graduates who earn doctorates in economics. Our findings suggest that economics departments at HBCUs produce less research output relative to non-HBCUs. However, research output is equally effective in producing economics doctorates at both types of institutions. These findings suggest that a plausible way to increase the stock of black Ph.D. economists is to increase economics research at HBCUs.     

Black business ownership in the rural south

The relatively low business ownership rate among blacks nationwide (12.5 per 1,000 people) is even lower in the rural South (8.8 per 1,000). This study uses Census Bureau data to document the level of business ownership among blacks in the rural South and to explore a number of hypotheses regarding the low level of business ownership among rural blacks and the variation from state to state. The size of the black population in the rural areas of a state is negatively correlated with the rural black business ownership rate in the state, while the education level, income level and homeownership level of blacks in rural areas of a state is positively correlated with the rural black business ownership rate. However, it appears that statewide economic conditions may be more closely related to the level of rural black business ownership than are characteristics of rural blacks.     

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.     

Notes on implicit contracts and the racial unemployment differential

In this article the application of the implicit contract model to black-white inequality is critically evaluated. The discussion revolves around the analysis of Grossman and Trepeta, who view black employment instability as resulting in part from a higher propensity of blacks to renege on implicit contracts. That approach is shown to be theoretically implausible and empirically inconsistent with the data on quit behavior by blacks. As an alternative, a reputational model in which employers have incentives to renege on risk-shifting contracts is discussed.     

A report on the educational status of black women during the un decade of women, 1976–85

By most statistical indicators, the educational gains made by black women during the past decade are rapidly being eroded: high school completion rates and college enrollment figures are declining, and dropout rates are increasing. The increase in black women earning bachelors and graduate degrees is due almost entirely to their higher participation rates in college. A higher proportion of blacks than whites are below 24 years of age; declining enrollments at a time when the black population is expanding reflects a significant loss. Important areas for policy initiatives include increases in financial aid. a critical factor in college attendance by black women-particularly at the graduate and professional degree levels-improvement in quality of primary and secondary education and counseling, and continuing education programs for teenage mothers.     

Attitudes towards race and poverty in the demand for private education: The case of Mississippi

Most studies of the demand for private education have treated “white flight” as a response to the proportion of the population that is black in a particular area. The present article, by contrast, considers the possibility that this flight may be from poverty rather than race. The article develops an aggregate demand function for private education from which individual behavior may be inferred, and then applies the model to data from Mississippi. The results suggest that prejudice is directed against poor blacks rather than against nonpoor blacks or poor whites.     

Market structure and the pattern of black-owned firms

This article discusses the relationship between industrial concentration and the presence of black-owned firms. Strong evidence is found that more monopolistic industries have a smaller black presence. This demonstrates that the monopolistic industries in which black workers are known to face the worst discrimination are also the industries in which blacks face the highest structural entry barriers as entrepreneurs. Indeed, entry barriers may cause the monopolistic conditions which allow discrimination while simultaneously frustrating the entry of black entrepreneurs.     

The effect of discrimination and segregation on black male migration

This article develops and tests a model of black male migration to major standard metropolitan statistical areas (SMSAs). Migration is examined using a dual labor market approach. A statistical model is tested that incorporates measures of discrimination and segregation. The results are consistent with the argument that discriminatory employment practices constrain black male migration and suggest that past practices help explain the labor market problems of young blacks today. The analysis is temporal, but provides insights into previously unstudied determinants of black male migration. Decennial census data is used for fifty SMSAs.     

Assessing black progress: voting and citizenship rights,residency and housing,education

Farley discusses progress US blacks have made in the areas of voting and citizenship rights, residency and housing, and education. A major goal of the civil rights movement was to permit blacks to influence the electoral process in the same manner as whites. Most important in this regard was the Voting Rights Act of 1965; the proportion of southern blacks casting ballots increased sharply since the early 1960s. The Civil Rights Act of 1875 outlawed racial segregation in public accommodations, but by the turn of the century, Jim Crow laws in southern states called for segregation in most public places. Common customs and government policy in the North resulted in similar segregation of blacks from whites. The Montgomery bus boycott and similar protests in dozens of other cities led to enactment of Title II of the Civil Rights Act of 1964, which proscribed such racial practices. By the late 1960s, blacks in all regions could use the same public accommodations as whites. In most metropolitan areas, de facto racial segregation persisted long after the laws were changed. Supreme Court decisions and local open-housing ordinances supported the right of blacks to live where they could afford. However the major change was the Fair Housing Act of 1968, which outlawed racial discrimination in the sale or rental of most housing units. The separation of blacks from whites did not end in the 1970s. Today, in areas which have large black populations, there are many central city neighborhoods and a few in the suburbs which are either all-black or are becoming exclusively black enclaves. Most other neighborhoods have no more than token black populations. Another major effort of civil rights organizations has been the upgrading of housing quality for blacks. By 1980, only 6% of the homes and apartments occupied by blacks lacked complete plumbing facilities (down from 50% in 1940). Unlike the modest changes in residential segregation, racial differences in housing quality have been greatly reduced. By 1960, black students approached parity with whites in terms of measurable aspects of school facilities. In 1940, young blacks averaged about 3 fewer years of educational attainment than whites; the time is nearing when the years of schooling completed by blacks and whites will be the same. In small and medium-sized cities throughout the country, public schools are generally integrated. However, the situation in the largest metropolitan areas is very different. Today, large public schools are segregated, in large part, because blacks and whites live in separate school districts.     

Land tenure in an urban area∗

The paper considers land tenure in black townships in Grahamstown. The legal and practical difficulties which the township dwellers have in acquiring secure land rights is a reflection of their subordinate political status. All decisions about where blacks live and the laws and regulations under which they have operated since the establishment of Grahamstown have been made and administered by whites. At some periods individual whites, welfare and religious organizations have shown some sympathy and concern for the problems of blacks in the area. But such sympathy and concern has never gone so far as to permit blacks effective participation in the life of the city nor even real control over their affairs in the areas allocated to them. In view of the legal restrictions which limit the chances of blacks to gain access to land, the paper is largely a demonstration of the causes and extent of urban landlessness and what implications this situation has on policy making regarding land tenure.     

The role of housing vouchers in baltimore city,Maryland

In Baltimore City, the relative well-being of black and white families using Section 8 housing vouchers versus Section 8 housing certificates is compared. Logistic regression is used to examine whether the social and economic characteristics of a regional planning district play a significantly different role in the likelihood that a district will have voucher or certificate recipients. A second analysis examines the average monthly rent paid by blacks and whites for housing in the certificate and voucher programs. The results suggest that whites receive greater economic benefits in the voucher program than in the certificate program while blacks do not. This article is based on a paper entitled /’’ The Impact of Housing Vouchers on the Black Family,” which was funded by the Baltimore Urban League and presented at the National Conference of Political Scientist, March 1989.     

High school athletics and the wages of black males

This article examines the effects of high school athletic participation on the future wages of black males. Our evidence suggests that former black male athletes receive significantly greater wages than their otherwise comparable counterparts. Data from the National Longitudinal Survey of Youth was used for the analysis and allows for comparisons of the athlete premium to be made at different points in time. Both the human capital and signaling models are discussed. There appears to be a once and for all enhancement to human capital that accrues to black males who participated in high school athletics. The article adds to the literature on determinants of black male wages and on the earnings effects of athletic participation.     

Black economic well-being since the 1950s

Conclusion Industrial cities like Cleveland and Pittsburgh that once offered manufacturing jobs as a route to economic advancement no longer provide an economic environment conducive to long-run gains in black incomes. Faced with massive losses in blue-collar manufacturing jobs in the 1970s and 1980s — as well as growing local government fiscal difficulties — these cities are changing rapidly in character. Administration and management are more and more the dynamic, expanding sector, and the resultant demands for workers have been concentrated in the white-collar fields. Highly educated blacks benefit from these trends in job availability; the less educated lose ground economically. The swing between widespread progress (as in World War II) and widespread regression in relative economic status (as in the 1930s) was the traditional cyclical fate of the overall urban black population. Today the smaller white-collar group prospers while the larger blue-collar urban black work force is undermined, except in periods of labor shortage.     

The economic interests of black and white women: Are they similar?

Are the economic interests of black and white women similar? This article explores this question by reviewing data on the “feminization of poverty,” data on changes in the economic status of blacks, and differences in the occupational status of black and white women. The article reviews several policy questions, discusses ways in which the interests of black and white women differ in the policy arena, and concludes that although there are some similarities in the interests of black and white women, the racial interests of black women suggest that the interests of black and white women may frequently differ.     

Labor force competition and the black-white wage gap

Have the increasing numbers of women and immigrants in the U.S. labor force adversely affected the relative earnings of black men? A recent article in this journal argued that they have, based on empirical analysis of 1970 census data. The present study begins with a critique of both the theoretical assumptions and the empirical methods of this earlier article. A regression analysis of 1980 census data is then undertaken, which indicates that recent immigration has not had a negative impact on the relative wages of central-city black men. The findings also suggest that while higher rates of female labor force participation are statistically associated with lower black-white wage ratios, this effect is limited to teenagers.