A multinomial logit nondiscriminatory approach to estimating racial wage and occupational discrimination

This paper combines a technique to measure nondiscriminatory wage structures with a multinomial logit model to estimate both occupational racial discrimination and within-occupation racial wage underpayment and overpayment. Using a recent South African October Household Survey it is found that racial discrimination against blacks and in favour of whites still persists in the South African labour market, implying the persistence of white employer nepotism and/or white employee discrimination.