Work detail

Position of Minorities in the U.S. Labor Market

Author: Bc. Jan Svoboda
Year: 2012 - summer
Leaders: Mgr. Barbara Pertold-Gebicka M.A., Ph.D.
Work type: Bachelors
Language: English
Pages: 96
Awards and prizes:
Abstract: This thesis deals with the phenomenon of racial discrimination in the U.S. labor market.
The first part outlines the existing theories of discrimination and history of immigrants’
residence in the U.S. It also brings some statistics from the U.S. labor market and finally
reviews some literature in the field of labor market discrimination. The second part of
the thesis is devoted to the empirical analysis of wage discrimination in the U.S. using
the American Community Survey 1980 and 2007. With the help of Oaxaca-Blinder
decomposition we break down the log-wage differential between whites and other racial
groups into two parts. The first, explained, part is the part of the differential that can be
explained by differences in average race characteristics. The other, unexplained, part is
the part of the differential that remained unexplained. That part is then assigned as a
result of discrimination. We find that while in 1980 Asians earned on average 5% more
than whites, by 2007 this difference reached 15%. 15% - 21% of this difference
remained unexplained. The opposite situation is observed in the case of Hispanics and
Blacks. While in 1980 both, Hispanics and Afro-Americans, had on average 10% lower
wage than whites, by 2007 this difference reached as much as 30%. In case of Afro-
Americans, 50% - 60% remained unexplained, in case of Hispanics 46% remained
unexplained. It seems that employers in the U.S. labor market have strong tendency to
discriminate against human capital of minorities.
Downloadable: Bachelor Theses of Svoboda
June 2023


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