Friday, October 7, 2011

Texas & Wages

Super-Economy points out that while Texas has low wages, compared to the rest of the United States, it actually has high wages compared to the rest of the United States--a curious example of Simpson's Paradox.  (And this from someone who does not think much of Governor Perry.)

It turns out that whites, blacks, and Hispanics in Texas have higher wages than whites, blacks, and Hispanics in the U.S. as a whole, but because Texas' population is disproportionately black and Hispanic (which groups have generally lower wages than whites), Texas is a low wage state on average, and yet whites, blacks, and Hispanics all have higher wages in Texas than they do elsewhere.

As Mr. Spock would say, "Fascinating."

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