Publication Date


Document Type


First Advisor

Mauer, Laurence J.

Degree Name

M.A. (Master of Arts)

Legacy Department

Department of Economics


Discrimination in employment--United States; Blacks--Employment


This thesis is designed to explain statistically the variability of Negro male-white male nominal income differentials over thirty-four states for 1959. Two models are developed to explain this variability: (1) HUMAN CAPITAL—DISCRIMINATION MODEL and (2) HUMAN CAPITAL— DISCRIMINATION—SEGREGATION MODEL. In this cross-sectional investigation regression analysis is used applying the least squares technique in which eight variables are employed (all in ratio form) with median income as the dependent variable. The seven independent variables consist of age, education, population (proxy for discrimination), urban concentration, and three industrial mix variables: primary, secondary and tertiary industries (segregation variables). This thesis is unique because it is the first time discrimination and segregation have been made operational for empirical research. As a result the findings are surprising. Discrimination is highly prevalent in the market place, although there is no way of finding who is the discriminator—the employer, employee, or consumer. Segregation is insignificant, while education is significant in both models; however, it is negatively related to discrimination. Thus segregation is unimportant in explaining the variability of Negro male—White male nominal income differentials, while discrimination and educational attainment vary from state to state and account for 65 per cent of the variability of Negro male—White male nominal income differentials.


Includes bibliographical references.


44 pages




Northern Illinois University

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