Working for Cents on the Dollar

Working for Cents on the Dollar

Race and Ethnic Wage Gaps in the Noncollege Labor Market

This paper uses data from the 2007 Survey of Employers in the Low-Skill Labor Market to analyze whether wage differences among workers of different races and ethnicities in the low-skill labor market remain after controlling for individual, job, and employer characteristics. The employer-provided data include detailed information on job requirements and employer characteristics rarely available in household surveys. We find that black workers earn significantly less than white workers in the less-skilled labor market, and a significant difference (12 percent) remains even after controlling for worker, job, and employer characteristics.

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