TY - JOUR AU - Lang,Kevin AU - Manove,Michael TI - Education and Labor-Market Discrimination JF - National Bureau of Economic Research Working Paper Series VL - No. 12257 PY - 2006 Y2 - May 2006 UR - http://www.nber.org/papers/w12257 L1 - http://www.nber.org/papers/w12257.pdf N1 - Author contact info: Kevin Lang Department of Economics Boston University 270 Bay State Road Boston, MA 02215 Tel: 617/353-5694 Fax: 617/353-4001 E-Mail: lang@bu.edu M2 - featured in NBER digest on 2006-05-29 AB - We propose a model that combines statistical discrimination and educational sorting that explains why blacks get more education than do whites of similar cognitive ability. Our model explains the difference between blacks and whites in the relations between education and AFQT and between wages and education. It cannot easily explain why, conditional only on AFQT, blacks earn no more than do whites. It does, however, suggest, that when comparing the earnings of blacks and whites, one should control for both AFQT and education in which case a substantial black-white wage differential reemerges. We explore and reject the hypothesis that differences in school quality between blacks and whites explain the wage and education di%uFB00erentials. Our findings support the view that some of the black-white wage di%uFB00erential reflects the operation of the labor market. ER -