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Race and Ethnicity

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University of Massachusetts Boston

Economics Faculty Publication Series

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On The Decomposition Of Wage Differentials, Jeremiah Cotton May 1988

On The Decomposition Of Wage Differentials, Jeremiah Cotton

Economics Faculty Publication Series

The often used method for decomposing wage differentials into human capital and discrimination components is reformulated so that both the disadvantage, or "cost," discrimination imposes on a black or minority wage earner and the advantage, or "benefit," it bestows on a white or majority wage earner can be estimated.