Racial Wage Inequality: Job Segregation and Devaluation across U.S. Labor Markets
Journal Article
Huffman, Matt L.
Cohen, Philip N.
2004
American Journal of Sociology
109
4
902-36
10.1086/378928
3854
Despite decades of research showing greater black-white inequality in local areas where the black population is relatively large, little is known about the mechanisms for this effect. Using a unique data set of individuals nested within jobs across labor markets, this article tests two possible mechanisms for the black concentration effect on wage inequality: job segregation and devaluation. Results show that black population size is associated with greater segregation of black workers into black-dominated jobs. On the other hand, no evidence is found that the penalty for working in a black-dominated job (the devaluation effect) increases as a function of black population size. The article concludes that discrimination against workers—especially exclusion from better-paying jobs—is an important mechanism for the effect of black population size on the racial wage gap.
Population Movement, Diversity, Inequality
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