Wage discrimination over the business cycle

Author:

Biddle Jeff E,Hamermesh Daniel S

Abstract

Abstract Using CPS data from 1979–2009 we examine how cyclical downturns and industry-specific demand shocks affect wage differentials between white non-Hispanic men and women, Hispanics and non-Hispanic whites, and African-Americans and non-Hispanic whites. Women’s relative earnings are harmed by negative shocks; the wage disadvantage of African-Americans drops with negative shocks, while the impact on Hispanics’ wages is unclear. 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. Jel codes J7, E3

Publisher

Walter de Gruyter GmbH

Subject

Organizational Behavior and Human Resource Management,Economics and Econometrics,Industrial relations

Reference25 articles.

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