Race, cognitive skills, psychological capital and wages
The Thernstroms have challenged the long established "stylized fact" that blacks earn less than otherwise comparable whites. They argue that research that neglects the influence of cognitive ability on wage is responsible for this finding. In the Thernstrom's view, research that adopts an appropriate specification for the wage equation demonstrates that black workers are paid as comparable white employees. This article casts doubt on the validity of the Thernstrom's claim. The authors find that when psychological capital is included in a model of wage determination, blacks earned significantly less than otherwise comparable white workers.