1. Group #5

2. Contents Econ 240a 01 _ Introduction 02 _ Observations 03 _ Data Analysis Races vs Income & Employment Levels 04 _ Conclusion

3. 01 Introduction + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +

4. Introduction University of California Santa Barbara Econ240a Fall 2004 Group #5 >> Questions Posed 1. Does ethnic background play a role in income earnings of workers in the United States? 2. Is race tied to unemployment levels? (i.e Does one group bear the brunt of unemployment for the country?) 3. Are trends of equality improving with time?

5. Introduction University of California Santa Barbara Econ240a Fall 2004 Group #5 >> To Answer - looked at income earnings and unemployment rates across A) EthnicityB) Time

6. Introduction University of California Santa Barbara Econ240a Fall 2004 Group #5 >> Methods Used We ran regressions observing the trends for different ethnic groups in the United States, observing how these income and unemployment levels change across time, and how they differ among races. More specifically, we looked at how educational attainment levels among different groups effects their income levels. Descriptive Statistics were run in EViews and Excel to analyze the statistical relevance of our regressions. Wald-Tests were used to determine if the various regressions were statistically valid and significantly different across time and across ethnic groups.

7. 02 Observations + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +

8. Observations University of California Santa Barbara Econ240a Fall 2004 Group #5 >> Observations Non-High School Graduates: Hispanic population has passed African Americans in income levels Some College: Here we see that there is very little difference between Hispanic income levels and African American levels – Caucasians experience a significant increase compared to both. High School Graduates: Caucasian population has experienced the greatest increase, as indicated by a steeper slope, and the difference between Caucasians and other ethnic groups is increasing.

9. Observations University of California Santa Barbara Econ240a Fall 2004 Group #5 >> Observations BA: Same observations as with some college, but with Caucasians distancing themselves even further. Over time the distance between Caucasians and other ethnic groups is increasing at an increasing rate. Advanced Degree: Suddenly the Hispanic population is significantly higher than African Americans, so the difference between Caucasians and African Americans is the greatest here.

10. 03 Data Analysis + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +

11. Data Analysis University of California Santa Barbara Econ240a Fall 2004 Group #5 >> Income vs Education Level | Non High School Graduate

12. Data Analysis University of California Santa Barbara Econ240a Fall 2004 Group #5 >> Income vs Education Level | High School Graduate

13. Data Analysis University of California Santa Barbara Econ240a Fall 2004 Group #5 >> Income vs Education Level | Some College

14. Data Analysis University of California Santa Barbara Econ240a Fall 2004 Group #5 >> Income vs Education Level | Bachelor

15. Data Analysis University of California Santa Barbara Econ240a Fall 2004 Group #5 >> Income vs Education Level | Advanced Degree

16. Data Analysis University of California Santa Barbara Econ240a Fall 2004 Group #5 >> Income vs Education Level | Caucasian

17. Data Analysis University of California Santa Barbara Econ240a Fall 2004 Group #5 >> Income vs Education Level | Hispanic

18. Data Analysis University of California Santa Barbara Econ240a Fall 2004 Group #5 >> Income vs Education Level | African American

19. Data Analysis University of California Santa Barbara Econ240a Fall 2004 Group #5 >> Unemployment Rates : Race

20. Data Analysis University of California Santa Barbara Econ240a Fall 2004 Group #5 >> Unemployment Rates across time

21. Data Analysis University of California Santa Barbara Econ240a Fall 2004 Group #5 >> Wald Test The Wald test computes the test statistic by estimating the unrestricted regression without imposing the coefficient restrictions specified by the null hypothesis. The Wald statistic measures how close the unrestricted estimates come to satisfying the restrictions under the null hypothesis. If the restrictions are in fact true, then the unrestricted estimates should come close to satisfying the restrictions.

22. Data Analysis University of California Santa Barbara Econ240a Fall 2004 Group #5 >> Wald Test Topic F Stat Prob Unemployment Rate4.1345650.08716 Unemployment Level201.55540.000017 Income vs Education Not High School Graduate4.7326880.070243 High School Graduate1.4984250.30912 Some College2.867220.148073 Bachelor Degree6.4970550.055402 Advance Degree9.757150.028937

23. 04 Conclusion + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +

24. Conclusion University of California Santa Barbara Econ240a Fall 2004 Group #5 >> Educational attainment proves to give the biggest boost to the Caucasian population in the United States, followed by the Hispanic population. African Americans are substantially under-rewarded for equal levels of educational attainment, and as education level increases, income compensation increases less for this group. Conclusions

25. Conclusion University of California Santa Barbara Econ240a Fall 2004 Group #5 >> Across time (as analyzed from 1980 to present) the disparities amongst race is steadily increasing, indicating no improvement in systemic racism. Conclusions On top of the disparities in income, minority groups have tended to bear the brunt of the burden of unemployment in our country. Here, however, the disparities between races tend to be decreasing, indicating ethnic background to be becoming less of a factor over time of who is employed.