Measures of wage discrimination

[Brad De Long]

>Friends,
>
>I would add that, even if we use the demand/ supply model of the
>neoclassicals and try to eliminate the gap between the wages, say of
>black and white workers, by holding constant all of the supply/demand
>determinants (education, training, preferences for leisure, etc.) and we
>are still left with a residual, it would be a mistake to consider this
>residual the only representation of racism.  The supply/demand
>determinants themselves (e.g. education)are different no doubt because
>of prior discrimination.

Very true. Claudia Goldin has a nice discussion of this (in the gender
context) in her book _Understanding the Gender Gap_...