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Racial Gaps, Occupational Matching, and Skill Uncertainty
White workers in the United States earn almost 30 percent more per hour on average than Black workers, and this wage gap is associated with large racial differences in occupational assignments. In this article, we theoretically and empirically examine the Black-White disparity in occupations. First, we present a model based on Antonovics and Golan (2012) that relates occupational assignments to the incentives workers face while learning about their own unknown ability. Second, we document differences between Black and White workers in both the complexity of skills required in their initial ...