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Differences in returns to education: an analysis by race
American Journal of Economics and Sociology, The, July, 1994 by Javed Ashraf
The returns for blacks and whites were much closer to each other among those who had completed high school. In contrast to the "College or More" category, there were several years in which whites with high school diplomas had higher returns to their investment in education than their black counterparts.
It must be borne in mind that since large numbers of blacks earn high school diplomas, the potential for discrimination is much greater in this category relative to the "College or More" group. In the latter group, the relatively small number of blacks are much more likely to be beneficiaries of affirmative action programs. Even more strongly, it has been suggested that there may be "reverse discrimination" in the case of blacks with higher levels of education. Thus earnings for black college graduates may represent positive returns to both race and education. The relatively large number of blacks with high school diplomas increases their exposure to discriminatory treatment. Thus, for black, high-school educated workers, there may be a negative return to race that overwhelms the positive returns to education.
