Alternative models to explain the variability in income differentials.
between Black males and White males over thirty-two
Standard Metropolitan Statistical Areas (SMSAs) were estimated
by ordinary least squares using cross-sectional data
for each of three points in time - 1950, 1960, and 1970. Two
models were tested for each time period . The Becker-type
model used a Black-White male median income ratio as a dependent
variable with age, education, three occupational mix
variables, and current population as the independent variables.
The second model used the same variables with the
exception that current population was replaced by population
lagged ten years. All variables were in Black-White ratio
form. The results are of interest to the student of the
economics of discrimination, since the methodology can be
applied to the examination and comparison between any two
categories of people.