Despite the rapid expansion of higher education, many young adults still enter the labor market without a college education. However, little research has focused on racial/ethnic earnings disadvantages faced by non-college-educated youth. We analyze the restricted-use data from the High School Longitudinal Study of 2009 to examine racial/ethnic earnings disparities among non-college-educated young men and women in their early 20s as of 2016, accounting for differences in premarket factors and occupation with an extensive set of controls. Results suggest striking earnings disadvantages for Black men relative to white, Latinx, and Asian men. Compared to white men, Latinx and Asian men do not earn significantly less, yet their earnings likely differ substantially by ethnic origin. While racial/ethnic earnings gaps are less prominent among women than men, women of all racial/ethnic groups have earnings disadvantages compared to white men. The results call for future studies into the heterogeneity within racial/ethnic groups and the intersectionality of race/ethnicity and gender among non-college-educated young adults.
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The long-run impacts of banning affirmative action in US higher education
Abstract This paper estimates the long-run impacts of banning affirmative action on men and women from under-represented minority (URM) racial and ethnic groups in the United States. Using data from the US Census and American Community Survey, we use a difference-in-differences framework to compare the college degree completion, graduate degree completion, earnings, and employment of URM individuals to non-URM individuals before and after affirmative action bans went into effect across several US states. We also employ event study analyses and alternative estimators to confirm the validity of our approach and discuss the generalizability of the findings. Results suggest that banning affirmative action results in a decline in URM women’s college degree completion, earnings, and employment relative to non-Hispanic White women, driven largely by impacts on Hispanic women. Thus, affirmative action bans resulted in an increase in racial/ethnic disparities in both college degree completion and earnings among women. Effects on URM men are more ambiguous and indicate significant heterogeneity across states, with some estimates pointing to a possible positive impact on labour market outcomes of Black men. These results suggest that the relative magnitude of college quality versus mismatch effects vary for URM men and women and highlight the importance of disaggregating results by gender, race, and ethnicity. We conclude by discussing how our results compare with others in the literature and directions for future research.
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- Award ID(s):
- 2121120
- PAR ID:
- 10560579
- Publisher / Repository:
- Oxford University Press
- Date Published:
- Journal Name:
- Oxford Review of Economic Policy
- Volume:
- 40
- Issue:
- 3
- ISSN:
- 0266-903X
- Page Range / eLocation ID:
- 607 to 628
- Format(s):
- Medium: X
- Sponsoring Org:
- National Science Foundation
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