Abstract
A wage decomposition method is used to examine components of average wage differentials in the youth labor market, letting both race and gender vary. Issues of selection bias and computation of the nondiscriminatory wage are addressed. Findings indicate that bias in the youth labor market focuses more on gender than race. However, until researchers devise consistent methods of estimating the source, amount, and direction of discrimination, policy makers face difficulty devising procedures to correct discriminatory wage differences.
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