ABSTRACT
The annual percentage increase in the real wage (offer) due to an additional year of general experience (after having obtained five years of general experience), holding specific experience constant, is about 2 percent for blacks and 7.5 percent for whites. With respect to tenure, the first year of specific experience, holding general experience constant, increases the real wage (offer) by about 7 percent for blacks and 5 percent for whites. These estimates are very close to the estimate obtained by Topel as a lower bound. Interestingly, the variance in wage offers is considerably larger for whites than for blacks, which contributes to faster wage growth among whites.
