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Author: Varghese, Geetha M.
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Varghese, Geetha M. |
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An Analysis of Racial Differences in Employment and Their Feedback Effect on the Accumulation of Human Capital Ph.D. Dissertation, Rutgers University, The State University of New Jersey - New Brunswick, 1994. Also: http://proquest.umi.com.proxy.lib.ohio-state.edu/pqdweb?index=0&did=746569461&SrchMode=2&sid=1&Fmt=2&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1261156413&clientId=3959 Cohort(s): NLSY79 Publisher: UMI - University Microfilms, Bell and Howell Information and Learning Keyword(s): Age and Ageing; Behavioral Differences; College Enrollment; Economics of Discrimination; Educational Attainment; Educational Returns; Higher Education; Human Capital; Industrial Relations; Labor Market Demographics; Modeling; Racial Differences; Simultaneity This dissertation analyzes the negative effects of different hiring standards for blacks and whites on their investment in higher education. It also uses the informational assumptions underlying the human capital and signalling models to provide an estimate of the signalling value of education. In the first part of this thesis, I set up a model in which the hiring standard set by an employer and the educational decision of the worker are determined simultaneously. The hiring standard is shown to depend on the sorting value of education. Negative employer beliefs about the productivity of blacks are shown to increase the hiring standard facing blacks. At the same time, race-based educational subsidies reduce the sorting value of education and cause the hiring standard facing blacks to increase. In the second part of this thesis, I estimate the difference in the hiring standard facing blacks and whites using data from the National Longitudinal Survey of Youth. Since the racial difference in the hiring standard is shown to include a difference in the sorting value of education, the hiring equation is estimated under the assumption that the employer has no information about the quality of the worker. I find that most of the racial difference in hiring standards is due to differences in employer behavior. Using estimates of the expected gain from education, I estimate a structural form of the college attendance decision. My results indicate that the probability of college attendance for blacks would more than double if the differences in employer behavior were neutralized. The third part of the thesis discusses the estimation of the gain from education under the assumption that the employer has all the information needed about the type of the worker. Thus, the coefficient on education is purged of any signalling component it might have. A comparison of the return to education estimated under different assumptions about the employer's information provides a measure of the relative importance of the signalling value of education. The results indicate that the signalling value of education is a relatively small part of the total return to education. |
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Bibliography Citation
Varghese, Geetha M. An Analysis of Racial Differences in Employment and Their Feedback Effect on the Accumulation of Human Capital. Ph.D. Dissertation, Rutgers University, The State University of New Jersey - New Brunswick, 1994.. |