Racial Labor Market Gaps: The Role of Abilities and Schooling Choices
Abstract
This paper studies the relationship between abilities, schooling choices, and black-white differentials in labor market outcomes. The analysis is based on a model of endogenous schooling choices. Agents' schooling decisions are based on expected future earnings, family background, and unobserved abilities. Earnings are also determined by unobserved abilities. The analysis distinguishes unobserved abilities from observed test scores. The model is implemented using data from the NLSY79. The results indicate that, even after controlling for abilities, there exist significant racial labor market gaps. They also suggest that the standard practice of equating observed test scores may overcompensate for differentials in ability.
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Heckman, Stixrud and Urzua [2006] and Urzua [2008] demonstrate the importance of correcting for reverse causality arising from schooling affecting traits and traits affecting schooling in interpreting the effects of personality tests on socioeconomic outcomes.
“Heckman, Stixrud and Urzua [2006] and Urzua [2008] demonstrate the importance of correcting for reverse causality arising from schooling affecting traits and traits affecting schooling in interpreting the effects of personality tests on a variety of socioeconomic outcomes.”
From Personality Psychology and Economics (2011) · cites this paper as Urzua [2008]
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Lynam, D. R., Vize, C. E., & Miller, J. D. (2020) · Cambridge University Press eBooks · doi:10.1017/9781108264822.043 · Cited by 2 · see citing works
Jayawickreme, E., & Zachry, C. E. (2020) · Cambridge University Press eBooks · doi:10.1017/9781108264822.032 · Cited by 2 · see citing works
Disentangling the role of Pre-Labor Market Skills and Family Background when Explaining Inequality
Guzmán, J. J., & Urz, S. S. (2009) · Cited by 2 · see citing works
Basic Needs, Goals and Motivation
Szalma, J. L. (2020) · Cambridge University Press eBooks · doi:10.1017/9781108264822.030 · Cited by 3 · see citing works
Mikulincer, M., & Shaver, P. R. (2020) · Cambridge University Press eBooks · doi:10.1017/9781108264822.020 · Cited by 3 · see citing works
Models of Physical Health and Personality
Heilmayr, D., & Friedman, H. S. (2020) · Cambridge University Press eBooks · doi:10.1017/9781108264822.019 · Cited by 2 · see citing works
African-Americans in the U.S. Economy Since Emancipation
Sundstrom, W. A. (2015) · Routledge eBooks · doi:10.4324/9780203075616.ch27 · Cited by 1 · see citing works
Sallis, H., Smith, G. D., & Munafo, M. R. (2020) · Cambridge University Press eBooks · doi:10.1017/9781108264822.024 · Cited by 1 · see citing works
Self-Regulation and Control in Personality Functioning
Carver, C. S., & Scheier, M. F. (2020) · Cambridge University Press eBooks · doi:10.1017/9781108264822.029 · Cited by 1 · see citing works
Three Essays on Labor and Personality
Pande, N. (2011) · Open Scholarship Institutional Repository (Washington University in St. Louis) · doi:10.7936/k7tb14zq · Cited by 1 · see citing works
- Authors
- Urzúa, S.
- Affiliations
- Northwestern University (US)
- Corresponding author
- Urzúa, Sergio
- ORCID
- Urzúa, Sergio
- Venue
- Journal of Human Resources
- Publisher
- University of Wisconsin Press
- Published
- 2008
- Volume
- 43
- Issue
- 4
- Pages
- 919-971
- ISSN
- 0022-166X (ISSN-L)
- 1548-8004
- OpenAlex
- W2125431809
- Cited by
- 130
- References
- 38
- Citations by year
- 2026: 1 · 2025: 1 · 2024: 3 · 2023: 5 · 2022: 1 · 2021: 4 · 2020: 43 · 2019: 6 · 2018: 2 · 2017: 3 · 2016: 3 · 2015: 3 · 2014: 8 · 2013: 10 · 2012: 5
- FWCI
- 23.90
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- The Journal of Human Resources (publishedVersion)
- Project Muse (Johns Hopkins University) (submittedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
- Social Sciences › Sociology and Political Science › Intergenerational and Educational Inequality Studies
- Social Sciences › Sociology and Political Science › Names, Identity, and Discrimination Research
- Keywords
- unobserved ability, test equating, ability assessment, family background, National Longitudinal Survey of Youth 1979
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