An analysis of occupational upgrading differentials between black and white males

Abstract

The racial occupational mobility gap is examined by applying a decomposition methodology to logistic functions. Results indicate that approximately one-third of the mobility gap between black and white male workers is due to differences in average characteristics (the endowment effect). The residual difference accounts for the remaining two-thirds. Formal education is found to be a major component of both the endowment effect and the resdiual difference. The ‘returns’ to tenure with a firm, overall labour market experience and marriage reduce the mobility gap in favour of black workers.