The author uses data from a 1992–94 survey of employers in four metropolitan areas to investigate the effects of skill demands, as measured by hiring requirements and job tasks, on the wages and employment of newly hired workers. Skill demands were generally associated with lower employment of blacks than whites, and with higher employment of women than men. Most tasks and requirements had statistically significant positive effects on starting hourly wages. Together, these effects help to account for some of the differences between the hourly wages of white and black men, and for some of the trends over time in the relative wages and employment of race and gender groups.
Get full access to this article
View all access options for this article.
References
1.
BlauFrancineKahnLawrence. 1994. “Rising Wage Inequality and the U.S. Gender Gap.”American Economic Review, Vol. 84, No. 2 (May), pp. 23–28.
2.
BoundJohnFreemanRichard. 1992. “What Went Wrong? The Erosion of Relative Earnings and Employment for Blacks.”Quarterly Journal of Economics, Vol. 107, No. 1 (February), pp. 201–32.
3.
BoundJohnHolzerHarry. 1996. “Demand Shifts, Supply Adjustments, and Labor Market Outcomes: 1980–1990.” National Bureau of Economic Research Working Paper.
4.
CutlerDavidGlaeserEdward. 1997. “Are Ghettoes Good or Bad?”Quarterly Journal of Economics, Vol 112, No. 3 (August), pp. 827–72.
5.
DavidsonCarlMartinLawrenceMatuszSteven. 1988. “The Structure of Simple General Equilibrium Models with Frictional Unemployment.”Journal of Political Economy, Vol. 96, No. 6 (December), pp. 1267–93.
6.
DinardoJohnPischkeJorn-Steffen. 1997. “The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too?”Quarterly Journal of Economics, Vol. 112, No. 1 (February), pp. 291–304.
7.
FixMichaelStruykRaymond. 1994. Clear and Convincing Evidence. Washington, D.C.: Urban Institute Press.
8.
GrissmerDavidKirbySheilaBerendsMarkWilliamsonStephanie. 1994. Student Achievement and the Changing American Family. Santa Monica, Calif.: Rand Corporation.
9.
HamermeshDaniel. 1993. Labor Demand. Princeton, N.J.: Princeton University Press.
10.
HolzerHarry J.1987. “Hiring Procedures In the Firm: Their Economic Determinants and Outcomes.” In BlockR., eds., Human Resources and Firm Performance. Madison, Wis.: Industrial Relations Research Association.
11.
HolzerHarry J.1996. What Employers Want: Job Prospects for Less-Educated Workers. New York: Russell Sage Foundation.
12.
HolzerHarry J.1998. “Why Do Small Establishments Hire Fewer Blacks Than Large Ones?”Journal of Human Resources, forthcoming.
13.
HolzerHarry J.IhlanfeldtKeith. 1998. “Customer Discrimination and the Employment of Blacks and Hispanics.”Quarterly Journal of Economics, forthcoming.
14.
HolzerHarry J.NeumarkDavid. 1998. “Are Affirmative Action Hires Less Qualified? Evidence from Employer-Employee Data on New Hires.”Journal of Labor Economics, forthcoming.
15.
HuntEarl. 1995. Will We Be Smart Enough?New York: Russell Sage Foundation.
16.
JuhnChinhuiMurphyKevinPierceBrooks. 1993. “Wage Inequality and the Rise in the Returns to Skill.”Journal of Political Economy, Vol. 101, No. 3 (June), pp. 410–42.
17.
JuhnChinhuiMurphyKevinTopelRobert. 1991. “Why Has the Natural Rate of Unemployment Increased over Time?”Brookings Papers on Economic Activity, No. 2, pp 75–126.
18.
KatzLawrenceMurphyKevin. 1992. “Changes in Relative Wages, 1963–87: The Role of Supply and Demand Factors.”Quarterly Journal of Economics, Vol. 107, No. 1 (1992), pp. 35–78.
19.
KruegerAlan. 1993. “How Computers Have Changed the Wage Structure: Evidence from Microdata, 1984–89.”Quarterly Journal of Economics, Vol. 108, No. 1 (February), pp. 33–60.
20.
MareRobert. 1995. “Changes In Educational Attainment and School Enrollment.” In FarleyReynolds, ed., State of the Union, Vol. 1. New York: Russell Sage Foundation, pp. 155–214.
21.
MurnaneRichardWillettJohnLevyFrank. 1995. “The Growing Importance of Cognitive Skills in Wage Determination.” National Bureau of Economic Research Working Paper.
22.
NealDerekJohnsonWilliam. 1996. “The Role of Pre-Market Factors in Black-White Wage Differences.”Journal of Political Economy, Vol. 104, No. 5 (October), pp. 869–95.
23.
OettingerGerald. 1996. “Statistical Discrimination and the Early Career Evolution of the Black-White Wage Gap.”Journal of Labor Economics, Vol. 14, No. 1 (January), pp. 52–78.
24.
ReesAlbert. 1966. “Information Networks in Labor Markets.”American Economic Review, Vol. 56, No. 2 (May), pp. 559–66.
25.
SmithJamesWardMichael. 1985. “Time-Series Growth in the Female Labor Force.”Journal of Labor Economics, Vol. 3, No. 1 (January), pp. S59–S90.
26.
TiendaMartaSchoenhalsMarkSchneiderBarbara. 1995. “Educational Consequences of Adolescent Employment.” Unpublished paper, University of Chicago.
27.
WilsonWilliam J.1987. The Truly Disadvantaged. Chicago: University of Chicago Press.
