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Does migration function to reduce earnings differentials by race and gender?

R G Krieg

    The Annals of Regional Science
    |January 1, 1990
    PubMed
    Summary
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    Interstate migration significantly reduces unexplained earnings gaps between races and genders. This suggests migration can mitigate wage discrimination and unobserved factors affecting income.

    Area of Science:

    • Economics
    • Sociology
    • Demography

    Background:

    • Earnings differentials by race and gender persist.
    • Unexplained portions of these differentials may reflect wage discrimination and unobserved heterogeneity.
    • The role of migration in influencing these differentials is not fully understood.

    Purpose of the Study:

    • To investigate how interstate migration affects earnings differentials based on race and gender.
    • To quantify the impact of migration on unexplained components of wage gaps.

    Main Methods:

    • Utilized microdata from the United States Census.
    • Estimated earnings functions stratified by race, gender, and migration status.
    • Analyzed the relationship between migration and earnings.
    Keywords:
    AmericasCultural BackgroundDemographic FactorsDeveloped CountriesEconomic FactorsEthnic GroupsIncomeMigrationMigration, InternalNorth AmericaNorthern AmericaPopulationPopulation CharacteristicsPopulation DynamicsSex FactorsSocioeconomic FactorsUnited States

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    Main Results:

    • Interstate migration substantially reduces unexplained earnings differentials for both racial and gender groups.
    • The process of migration appears to mitigate the impact of wage discrimination and unobserved heterogeneity on earnings.

    Conclusions:

    • Interstate migration plays a significant role in narrowing race and gender-based earnings disparities.
    • Migration can be a factor in reducing wage discrimination and addressing unobserved earnings determinants.