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The Allocation of Blacks in Large Firms and Establishments and Black-White Wage Inequality in the U.S. Economy
Authors:Aparna Mitra
Institution:Received her Ph.D. in political economy from the University of Texas at Dallas. She is currently a visiting assistant professor of economics at the University of Texas at Arlington. Her research interests include labor market segmentation, race and gender inequality in the labor market, and the role of the informal labor market in developing countries.
Abstract:Using data from the National Longitudinal Survey of Youth (NLSY) for 1988, this study analyzes the allocation of African Americans in large firms and establishments and the effects of the allocation process on Black-White wage inequality. The results show that Blacks are disproportionately employed in large establishments while being under-represented in supervisory positions. The Black-White wage differential, however, remains significant only in the large establishments, despite this study's use of detailed controls for worker quality.
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