Education and the earnings disparities between black and white men: A comparison of professionals in the public and private sectors

Abstract

Using regression adjusted earnings relatives, this research provides a quantitative examination of the impact of college education on the earnings of black and white professionals employed in the public and private sectors. Three principle findings emerge: first, there is strong evidence that college education is an equally valuable investment for both white and black menregardless of sector of employment; second, there exist important differences between the intrasector earnings of college-educated black and white professionals; and third, comparisons of intergroup earnings reveal that earnings discrimination continues to be a distinguishing feature of private sector labor markets. The evidence is broadly consistentg with the hypothesis that the public sector provides comparable earnings to equally skilled black and white professionals, implying that the public sector may be characterized by an absence of the earnings discrmination faced by college-educated black professionals in the private sector.