wage discrimination over the life course

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    The study considers the ineqaulitykeeping in mind the wage of people

    based on ethnic (racial and gender )perspective

    Study shows black people have beendiscriminated over the years but knowthe trends are changing

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    Cohort approach: The headingincludes literature review that

    argues against the genderdiscrimination among black andwhite people thus stating that

    discrimination has decreased overthe years and black people arefinding similar opportunities to

    white people

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    A persistent inequality effect can beinferred when wage gaps for womenand blackmen (vis-a-vis white men)

    widen overtime, irrespective of cohortmembership.

    A cohort effect on inequality can be

    inferred from lower levels of racial andgender in equality among youngercohort than among older cohorts, andwage differentials will remain constant

    and narrow over the life course.

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    Data: Was taken from Panel study of incomedynamics (PSID) which is a well known datasource.

    Defining Cohorts:Data was taken with respectto schooling of individuals on period basiswhich were from 1964 and prior than from1964 to 1972 and the youngest cohort from 1972onwards

    Dependent variable: Hourly Wage

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    Methodology: model representedunderlog(wage)= beta0+beta1 cohort-beta2 minoritygroup+beta4 controlvariables

    Control variables: are those which areindividual traits that effect wage.

    (A) Supply side control variable: 1-completed schooling 2- parent year ofschooling

    2- Demand side control variables: 1- tenurewith current employer 2- labor forceexperience

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    Accounting for selection bias: are thoseprobable situations which have beendemonstrated before and also presentsome cures to decrease bias. This also

    includes some variables which weremissed initially.

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    Career trends in racial and gender wageinequality: the analysis showed that

    white man were at par better earningthan Black men and women and werealso in a better position than the whitewomen satisfying that there is

    discrimination..

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    Potential criticism:

    1- some factors not taken into account for

    example gender gap in wages aftercontrolling for major field study andmental aptitude.

    2- intra- cohort decline in wage residualsfor example the barriers in organizationfaced by minorities expand overtime.

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    Discussion: It is clear that there has beendecline in discrimination. The younger peoplewhich are in minorities have more opportunity

    than there predecessors of early 60s and 70s. Conclusion: The study shows similarities to

    preceding studies that White men surpassblack men ,women and white women. Butmacroeconomic studies show decline in thetrends related to discrimination.

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