LABOR FORCE EXPERIENCE, JOB TURNOVER, AND RACIAL WAGE DIFFERENTIALS.

One purpose of this paper is to examine the relations between turnover and wages, to determine whether this aspect of dual market hypotheses has much power in explaining observed racial wage rate differentials. A further purpose is to determine the influence of alternative forms of human capital investments, relative to other contributory factors, on observed racial differences in hourly wage rates. Clearly a part of the gross racial wage differential is attributable to a relatively low black endowment of schooling, training, experience, etc. But within the limitations imposed by the data, these influences are normally held constant in studies using a dummy variable for race to measure a net racial wage differential. As a consequence, the dummy variable approach obscures the sources of measured discrimination coefficients by assuming the same wage structure for each race, whereas residual racial wage differentials reflect the fact that a given characteristic is paid a different price, depending on the race of an individual.