%0 Report
        %A Biddle, Jeff E.
%A Hamermesh, Daniel S.
        %T Wage Discrimination over the Business Cycle
        %D 2012
        %8 2012 Mar
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 6445
        %U https://www.iza.org/publications/dp6445
        %X Using CPS data from 1979-2009 we examine how cyclical downturns and industry-specific demand shocks affect wage differentials between white non-Hispanic men and women, Hispanics and non-Hispanic whites, and African-Americans and non-Hispanic whites.  Women's relative earnings are harmed by negative shocks; the wage disadvantage of African-Americans drops with negative shocks, which have slight negative effects on Hispanics' relative wages.  Negative shocks also increase the earnings disadvantage of bad-looking workers. A theory of job search suggests two opposite-signed mechanisms that affect these wage differentials.  It suggests greater absolute effects among job-movers, which is verified using the longitudinal component of the CPS.
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