We use panel data from the National Longitudinal Survey of Youth (NLSY79) to estimate the effects of cognitive skills (measured by the Armed Forces Qualification Test) and attitudinal/behavioral traits (a latent factor based on self-reported self-esteem, locus of control, educational aspirations and educational expectations) on career wage…

Through the 1960s, African-Americans earned much less than whites--even when their cognitive abilities (as measured by test scores) were similar. By the end of the century, however, many believed that employment discrimination had attenuated to such a degree that the gap in labor-market outcomes could be explained almost entirely by differences in…