Waddoups, J., Daneshvary, N., & Assane, D. (1995). An analysis of occupational upgrading differentials between black and white males. Applied Economics, 27(9), 841-847.
The racial occupational mobility gap is examined by applying a decomposition methodology to logistic functions. Results indicate that approximately one-third of the mobility gap between black and white male workers is due to differences in average characteristics (the endowment effect). The residual difference accounts for the remaining two-thirds. Formal education is found to be a major component of both the endowment effect and the resdiual difference. The ‘returns’ to tenure with a firm, overall labour market experience and marriage reduce the mobility gap in favour of black workers.
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