Cycles of Wage Discrimination

Biddle, Jeff; Hamermesh, Daniel S.

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Cycles of Wage Discrimination

NBER Working Paper No. w17326

37 Pages Posted: 29 Aug 2011 Last revised: 7 May 2022

See all articles by Jeff Biddle

Daniel S. Hamermesh

University of Texas at Austin - Department of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

There are 2 versions of this paper

Date Written: August 2011

Abstract

Using CPS data from 1979-2009 we examine how cyclical downturns and industry-specific demand shocks affect wage differentials between white non-Hispanic males and women, Hispanics and African-Americans. Women's and Hispanics' relative earnings are harmed by negative shocks, while the earnings disadvantage of African-Americans may drop with negative shocks. Negative shocks also appear to increase the earnings disadvantage of bad-looking workers. A theory of job search suggests two opposite-signed mechanisms that affect these wage differentials. It suggests greater absolute effects among job-movers, which is verified using the longitudinal component of the CPS.

Suggested Citation: Suggested Citation

Biddle, Jeff E. and Hamermesh, Daniel S., Cycles of Wage Discrimination (August 2011). NBER Working Paper No. w17326, Available at SSRN: https://ssrn.com/abstract=1918656