RT Journal Article SR Electronic T1 The Importance of Cost of Living and Education in Estimates of the Conditional Wage Gap Between Black and White Women JF Journal of Human Resources JO J Hum Resour FD University of Wisconsin Press SP 695 OP 722 DO 10.3368/jhr.49.3.695 VO 49 IS 3 A1 McHenry, Peter A1 McInerney, Melissa YR 2014 UL http://jhr.uwpress.org/content/49/3/695.abstract AB While evidence about discrimination in U.S. labor markets typically implies preferential treatment for whites, recent studies document a substantial wage premium for black women (for example, Fryer 2011). Although differential selection of black and white women into the labor market has been a suggested explanation, we demonstrate that accounting for selection does not eliminate the estimated premium. We then incorporate two additional omitted variables recently documented in the literature: (1) local cost of living and (2) years of education attained, conditional on AFQT score. After controlling for these variables, we find no evidence of a wage premium for black women.