Explaining Differences in Economic Performance Among Racial and Ethnic Groups in the USA

Abstract

Abstract. By utilizing self‐reported race and ancestry in the 1980 and 1990 USA censuses and the Blinder‐Oaxaca decomposition technique, the extent of wage discrimination experienced by women and by men is examined across 50 ethnic/racial groups. Systematic evidence of negative discrimination is revealed in both census years for Asian, Indian, black (African‐American), Vietnamese, Cuban, Mexican, Puerto Rican, and Native American males. To assess the charge that the Blinder‐Oaxaca decomposition indicates cultural rather than discriminatory differentials, two additional data experiments are performed—one that controls for color and varies culture, and one that controls for culture and varies color. Race appears to matter.