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Market Structure And Racial Earnings: Evidence From Job Changers, Richard U. Agesa, Jacqueline Agesa, Gary A. Hoover
Market Structure And Racial Earnings: Evidence From Job Changers, Richard U. Agesa, Jacqueline Agesa, Gary A. Hoover
Economics Faculty Research
In his seminal contribution, Gary Becker (1957) suggests that rents in noncompetitive industries provide employers with the latitude to engage in earnings discrimination. Implicit in this theory, is that white workers in noncompetitive industries would capture a disproportion ate share of monopoly rents (excessive wages) relative to their minority counterparts. We utilize wage-change equations to examine earnings shifts for whites and minorities stemming from a job switch to a different market structure. Additionally for each racial group, wage equations of workers before and after the job change are used to calculate difference in-differences estimates of wage change as a result …