-White = $ 122,800 Tuesday September 20, 2011 McElroy: Education raises labor force participate and earnings and reduces unemployment, but -the rewards to education, accrue unequally according to the race and gender of the person. -Education level is not the best measure of job qualification. However studies find controlling for worker and job characteristics leaves unexplained race and gender differences in pay. -Earnings – Flows form wages or salaries. -Income – Flows from earnings and also from unearned sources such as dividends, interest, benefits, transfers. -Wealth – is a stock of value in assets. It is a dollar amount at a given point in time – savings (e.g. in the form of stocks, bonds, property). -Wealth – insurance against an emergency. Networth: -Sum of a value of the family assets including equity. Financial Assets: -Sum of value of family assets excluding equity. 1.
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