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Social and Behavioral Sciences Commons

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1988

Race and Ethnicity

Economics Faculty Publication Series

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Full-Text Articles in Social and Behavioral Sciences

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.