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Rural Wages and Returns to Education: Differences Between Whites, Blacks, and American Indians

Author

Listed:
  • Jean Kimmel

    (Western Michigan University)

Abstract
Workers in rural areas earn lower wages than nonrural workers and previous evidence has attributed these differences to lower returns to worker characteristics. This paper builds on that data by examining racial and gender differences within the broader group of rural workers. While there is extensive evidence on both the structure of wages and the source of racial wage differentials between Whites and Blacks, there is no such evidence for those in either group living in rural areas. Nor is there much evidence in this literature for American Indians. This paper's contribution to the literature is two-fold. First, it broadens the existing evidence regarding rural workers by focusing on racial and gender differences. Second, it provides new evidence of the structure of wages faced by American Indians, a group typically ignored in empirical research due to data problems. The results reveal that only 14 percent of the 24 percent total wage difference between Whites and American Indians for males are unexplained by observable personal and job characteristics, but 66 percent of the 11 percent wage difference remains unexplained for females. Comparing Whites and Blacks, 44 percent of the 31 percent wage difference is unexplained for males, while 97 percent of the 15 percent wage difference is unexplained for females. With the rural focus, Whites are more similar to American Indians, both experiencing very small wage returns to education. However, in both samples, Blacks suffer disproportionately severe penalties for low educational attainment. For all three races, females enjoy much higher returns to education than males.

Suggested Citation

  • Jean Kimmel, 1994. "Rural Wages and Returns to Education: Differences Between Whites, Blacks, and American Indians," Upjohn Working Papers 94-27, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:weupjo:94-27
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    References listed on IDEAS

    as
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    Cited by:

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    2. Peter Kuhn & Arthur Sweetman, "undated". "Assimilation and Economic Success in an Aboriginal Population: Evidence from Canada," Canadian International Labour Network Working Papers 18, McMaster University.
    3. Steve Bradley & Mirko Draca & Colin Green & Gareth Leeves, 2007. "The magnitude of educational disadvantage of indigenous minority groups in Australia," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(3), pages 547-569, July.
    4. Jeffrey Burnette & Weiwei Zhang, 2019. "Distributional Differences and the Native American Gender Wage Gap," Economies, MDPI, vol. 7(2), pages 1-18, May.
    5. Olga Alonso-Villar & Coral del Río, 2021. "Privilege and Hindrance on the U.S. Earnings Distribution by Gender and Race/Ethnicity: The Role of Occupations in an Intersectional Framework with 12 Groups," Working Papers 2103, Universidade de Vigo, Departamento de Economía Aplicada.
    6. Agar Brugiavini & Danilo Cavapozzi & Yao Pan, 2017. "Education gradient in well-being late in life: the case of China," Working Papers 2017:28, Department of Economics, University of Venice "Ca' Foscari".
    7. Matthew Manning & Christopher L. Ambrey & Christopher M. Fleming, 2016. "A Longitudinal Study of Indigenous Wellbeing in Australia," Journal of Happiness Studies, Springer, vol. 17(6), pages 2503-2525, December.
    8. Henri ATANGANA ONDOA, 2019. "Education and wage inequality in the informal sector: The case of Cameroon," International Labour Review, International Labour Organization, vol. 158(3), pages 561-576, September.
    9. Sajjad Haider Bhatti & Muhammad Aslam & Jean Bourdon, 2018. "Market Returns to Education in Pakistan, Corrected for Endogeneity Bias," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 23(1), pages 79-96, Jan-June.

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    More about this item

    Keywords

    rural; wages; education; Indians; blacks;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • I2 - Health, Education, and Welfare - - Education

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