Experience, Tenure, and Wage Growth of Young Black and White Men
Bratsberg, Bernt, and Dek Terrell
This paper studies the source of differences in wage growth between young black and white workers. Focusing on 'terminal' high school graduates from the National Longitudinal Survey of Youth, the authors estimate the returns to on-the-job tenure and general labor market experience using ordinary least squares, Altonji and Shakoiko, and Topel estimators. Results from all three estimators indicate that returns to general experience for black workers trail those for white workers, but that black workers earn equal if not higher returns of tenure than do white workers.