Principles of Economics- Mankiw (5th) 415

Principles of Economics- Mankiw (5th) 415 - CHAPTER 19 E A...

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CHAPTER 19 EARNINGS AND DISCRIMINATION 427 In fact, human capital is probably even more important in explaining wage differentials than the foregoing numbers suggest. For many years, public schools in predominantly black areas have been of lower quality—as measured by expen- diture, class size, and so on—than public schools in predominantly white areas. Similarly, for many years, schools directed girls away from science and math courses, even though these subjects may have had greater value in the market- place than some of the alternatives. If we could measure the quality as well as the quantity of education, the differences in human capital among these groups would seem even larger. Human capital acquired in the form of job experience can also help explain wage differences. In particular, women tend to have less job experience on average than men. One reason is that female labor-force participation has increased over the past several decades. Because of this historic change, the average female worker to-
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