Male Entry into the Labor Force: Estimates of Occupational Rewards and Labor Market Discrimination

Abstract

Causal models of initial occupational rewards for black and white males are developed from the responses of first-year workers in the National Longitudinal Surveys of Labor Market Experience. A comparison of the black and white models shows that while blacks have experienced considerable upward mobility, their income and prestige remain far behind their white counterparts. Two explanations for this racial gap are indicated by the data: (1) blacks begin work with lower levels of key background variables, and (2) racial discrimination in the labor market. Our measurement of racial discrimination in labor market entry accounts for only a small proportion of the gap between black and white levels of rewards; and when compared with earlier research, the data indicate a national trend of decreasing racial discrimination in the labor market.