The North-South Wage Gap, Before and After the Civil War

In an economy with 'national' factor markets, the factor price effects of a permanent, regional specific shock register everywhere, perhaps with a brief lag. The United States in the nineteenth century does not appear to have been such an economy. Using data for a variety of occupations, I document that the Civil War occasioned a dramatic divergence in the regional structure of wages -- in particular, wages in the South Atlantic and South Central states relative to the North fell sharply after the War. The divergence was immediate, being apparent as early as 1866. It was persistent: for none of the occupations examined did the regional wage structure return to its ante-bellum configuration by century's end. The divergence cannot be explained by the changing racial composition of the Southern wage labor force after the War, but does appear consistent with a sharp drop in labor productivity in Southern agriculture. I also use previously neglected data to argue that the South probably experienced a decline in the relative price of non-traded goods after the War.

Education Achievement in Segregated School Systems: The Effects of "Separate-But-Equal"

Educational achievement in segregated school systems was considerably lower in the black schools than in the white schools. Economic historians have argued that the racial achievement gap reflected the discriminatory funding of the black schools. This paper assesses counterfactually the historical effects of a "separate-but-equal" policy of educational finance. Using cross-sectional data from 1930 and 1940, I estimate race-specific educational production functions. Eliminating race differences in inputs supplied by school boards explains 40-50 percent of the racial achievement gap, depending on how achievement is measured.The remainder appears to reflect the impact of family background on achievement, of which the most important effect was adult black illiteracy, a legacy of slavery and educational backwardness in the late 19th century. The paper also shows how school boards' marginal valuation of black achievement can be recovered from the production function estimates. Compared to preferences that would have led them to voluntarily practice equality,Southern school boards judged black achievement to be worth roughly half the value they placed on white achievement.

Accounting for Racial Differences in School Attendance in the American South, 1900: The Role of Separate-But-Equal

Everyone knows that public school officials in the American South violated the Supreme Court's separate-but-equal decision. But did the violations matter? Yes, enforcement of separate-but-equal would have narrowed racial differences in school attendance in the early twentieth century South. But separate-but-equal was not enough. Black children still would have attended school less often than white children because black parents were poorer and less literate than white parents.

The History of Wage Inequality in America, 1920 to 1970

In recent decades the United States has experienced a pronounced widening of its wage structure. For the most part, analysis of the recent rise in wage inequality has taken place with the benefits of hindsight—that is, without placing recent changes in the wage structure in historical context. This paper presents such an historical context, by summarizing what is currently known about the evolution of the wage structure from 1820 to 1970. I argue that this evolution was characterized by both episodic change and secular trends. Perhaps the most important secular trend is a long-term rise in the returns to educated labor beginning before the Civil War and continuing until the turn of the 20th century, followed by a decline over the 1900 to 1940 period. In the 1940s substantial further erosion in wage differentials took place, primarily as a consequence of various government policies and increases in the relative demand for less-skilled labor associated with World War II. Although wage inequality today is high by post-World War II standards, it is not particularly high when measured against the pre-World War II experience. As far as government policy is concerned, there is compelling historical evidence that long-term expansion of educational opportunity has been a potent force in narrowing wage differentials.