Arbeitspapier

The substitutability of labor of selected ethnic groups in the US labor market

This paper investigates the substitutability of labor of selected ethnic groups in the US labor market. In the generalized Leontief framework, the analysis of US census-based data reveals that labor of non-White ethnic groups is complementary to that of White ethnic group. This finding supports the view that the negative relationship between the relative earnings of an ethnic group and its relative size is a labor market phenomenon. Moreover, it implies that ethnic diversity of labor force has positive effects on aggregate output. While the estimated elasticities of complementarity are relatively small, they are shown to generate significant effects, given the very uneven distribution of ethnic groups across local labor markets, as resulting from long-run migration patterns.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 1945

Classification
Wirtschaft
Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
Human Capital; Skills; Occupational Choice; Labor Productivity
Subject
substitutability
elasticity of substitution
ethnic group
labor market

Event
Geistige Schöpfung
(who)
Kahanec, Martin
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2006

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Kahanec, Martin
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2006

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