Page 4-Friday, March 30, 1979-The Michigan Daily Report citing black advancement ignores facts 4 The conclusion of a widely published RAND report that blacks in recent decades have taken large strides toward wage equality with whites has come under fire from some' of the nation's top economists and social scientists. The RAND Corp. study, financed by the National academy of Sciences and released earlier this month, concludes that "between 1968 and 1975, black male wages have risen at a more rapid rate than those of whites, continuing a process that occurred during the 1960s." HOWEVER, OTHER economists and government studies contend that while the relative economic position of blacks and other minorities improve substan- tially between 1963 and 1969 - under pressure from the equal rights movement - the economic progress of these groups since 1970 has slowed and, in some cases, stopped. In addition, experts consulted by Pacific News Service .rebutted the RAND study's conclusion that: " Affirmative action programs have not been an important factor in the economic progress of blacks and other minorities. - There is not a secondary labor market fin the United States in which blacks have been relegated to dead-end jobs with little career wage growth potential., "THE RAND RESEARCHERS did not even faithfully interpret their own data," said Robert Hill, research direc- tor of the National Urban League. which is working an a detailed critique of the report. "In three out of four of the nation's regions," Hill said, "black-to-white earnings have actually fallen since 1970. I don't deny that there have been gains since.1947, but it's misleading to characterize the entire period as one of continuous gains for blacks when there has been a retrogression since 1970." Bernard Anderson, an economist at the Wharton School at the University of Pennsylvania, also criticized the RAND study conclusions. "I don't disagree with the idea that the relative wages of blacks have been improving. . . But it doesn't prove that the economic status of blacks has been improving generally since 1970. "IN THE 1960s many blacks got good jobs for the first time, especially during periods of economic expansion. Those blacks who managed to keep their jobs through the recession of 1969 to '70 have continued to benefit through the con- tinued improvement in the relative wage ratio. But in the recovery of 1972, and the current recovery, fewer blacks recovered their jobs, and in the recession of 1973 to '74 more blacks lost jobs. So that since 1970 the relative unemployment situation for blacks has grown worse, in contrast to the 1960s when it got better." Anderson said that black unem- ployment is higher today than at the last peak of the business cycle, while white unemployment is the same. He believes that the latest recovery has produced fewer jobs for blacks than for whites. Employers have been hiring white women instead of black men and, women. ."Employers see white women as sub- stitutes for black labor, and, especially - in periods of slow ecomonic growth, this By Martin Brown results in decreased labor market op- portunities for blacks." THE RAND study used data on only wages and salaries to support its con- clusion of increases in income equality. However, using government data for total income, a picture is revealed that shows no significant improvement in the black-to-white income ratio since 1970. A similar pattern is found for nonwhite-to-white income. Government statistics on total in- come as opposed to wages and salaries only, show that from 1948 to 1963, non- white male income averaged about 50 per cent that of white income. Between 1964 and 1970, the nonwhite income im- proved, reaching 60 per cent of that of whites by 1970. This improvement continued through 1975, the last year government statistics are available - but the rate of improvement was only half as fast as the earlier period. A similar pattern was revealed when statistics for family income were used in a recent study on income disparities between black and white Americans conducted by the Congressional Budget Office. According to that study, the ratio of nonwhite to white family in- come improved from 55 per cent in 1960 to 63 per cent in 1969. But from 1970 to 1974, the ratio decreased from 64 per cent to 62 per cent. JAMES SMITH, who with Finis Welch wrote the RAND report, said that the statistics using wage and salary earnings might give a more op- timistic picture of black economic progress than using income statistics. "There has been a decreased par- ticipation rate of black makes in the labor force," he acknowledged. "This would give an upward bias to wage and data because the lowest income black males would be the first to drop out of the labor market." Smith said it was "puzzling" that 'our study finds the labor market position of blacks improving in terms of relative wages, but the unemployment situation of blacks relative to whites has been getting worse." The relative deterioration of black family incomes since 1970 might be due to the increase in the number of black families that are headed by females. "This question of income needs to be studied more, but the income data is more complex than the wage and salary data," Smith said. SMITH AND WELCH attributed most of the gains in black economic status found in their study to "human capital" variables such as improved education for blacks. Affirmative action programs have done little for blacks, they contend. To support this they cite data showing that the least im- provement in job opportunities has oc- curred in government and government- regulated industries, while most im- provement occurred in private in- dustries - which have been least affec- ted by affirmative action programs. But Hill of the Urban League said, "The RAND study presents no systematic documentation for that. They say it, but the data doesn't show it." And Wharton's Anderson said, "It is absolute nonsense to say that there is no labor market discrimination that can't be affected by affirmative action. By only looking at wage ratios for highly aggregated (concentrated) industries, you see the forest, but miss the trees. You have to also look at the kind of oc- cupational categories for which blacks were hired. Employers did not sud- denly start hiring blacks for better oc- cupational categories in the 1960s for no reason. It was because there was political pressure to do so." AND - A STUDY of racial discrimination in industries by William Johnson of the University of Virginia and published in the current Bell Jour- nal of Economics found that gover nment was the least discriminatory employer and' private industry the most. The RAND report disagrees with the theory that blacks tend to be trapped in a secondary labor market with no up- ward mobility while whites tend to get preferred access to primary labor markets with upward mobility. Smith and Welch reported black-white wage ratios for population groups with dif- ferent education and job experience from 1967 to 1974. The data includes wdrkers with, college degrees, high school education and e:ighth grade education, and one, five, 10 and 15 years job experience. But a computer analysis of the RAND data by Pacific News Service reveals that the only population group' in which statistically significent upward trends for black-white ratios exist is in the college-educated group. FOR THE HIGH school group the trends are not significantly different from zero. And for the group with an eighth grade education the trends for the black-white wage ratios are very significant and downward over time. Smith said he still considers the report's finding valid because "it corrects the view that people have that even college educated blacks receive declining wages relative to whites over their work careers.. We could never say that there is nothing to the secon- dary labor market idea, but maybe it could be refined to be more consistent with the data." (Martin Brown, an associate editor- of Pacific News Service, is a post- graduate resfrch economist-at the University of California at Berkeley.) I 420 Maynard St., Ann Arbor, MI 48109 Eighty-Nine Years of Editorial Freedom Vol. LXXXIX, No. 143 News Phone: 764-0552 Edited and managed by students at the University of Michigan ~AT AIQ I WHAT c5t IO5 HAIE PAR CLASS Is b.)flATS AEE5t1 LA)S6ITuAIeGFOR~ 7 10L~oW E North Carolina deserves federal aid cut now CE~SIotj (S IO rad OF 7y hiss4~OYp AFI1-6C' s ver fM SW Ar 3Y, OF 15W) L 5 V&)CHPIOwYr OFF AT AfO~ T'S BEEN 25 years since the Brown vs. Board of Education desegregation ruling by the Supreme Court that 'separate but equal" schools for blacks and whites were un- constitutional. But since that lan- dmark decision, the North Carolina system of higher education remains "largely separate and unequal" ac- cording to U.S. Secretary of Health, Education and Welfare Joseph Calif ano. But it was not until this past Monday when Califano finally announced that the federal government will take ad- ministrative action against the state's public universities and colleges for continuing to run a racially segregated system of higher education. Further- more, Califano said the cutback in federal aid of $10-20 million would not begin for another 30 days, allowing the state more time to submit an accep- table desegregation plan. Why did the government wait so long to take federal funds from a state system practicing segregation? Twen- ty-five years is more than ample time for a state to adjust its educational system in order to follow federal con- stitutional guidelines. And why is it permitting North Carolina officials another 30 days? The U.S. government should have withdrawn funds from North Carolina many years ago. The system of higher education in North Carolina consists of 11 predominantly white and five predominantly black institutions. Also, there are many program du lications --* r' ** - " V, P at black and white institutions in the same geographical areas. These duplications maintain the status quo; they encourage white students to con- tinue to register at predominantly white institutions and black students at mostly black ones, thus continuing the once legally segregated system. Therefore, the federal government ha in effect been subsidizing a system of higher education that prac- tices segregation - an illegal and racially discriminatory system. Califano should cut back the aid im- mediately and reinstate it only when North Carolina has developed an in- tegrated system of higher education. By keeping federal funds there for even 30 days, the U.S. i§ giving sym- bolic approval for the state's system of higher education. Nine years ago, the HEW depar- tment notified North Carolina that its system of higher education was still racially segregated. Department spokesmen informed North Carolina officials that the state would have to increase the number of blacks in white schools, strengthen the black schools' facilities and curriculums, and eliminate the program duplications at black and white schools in the same areas. But North Carolina officials have refused to make any attempt to remove the duplications. The state educational authorities have agreed to provide blacks with better facilities, but the "largely unequal" status still remains. wol Ap ? 1C Letters Wetlands must be saved To the Daily: Next week, a very important bill will -be coming up for floor debate in the Michigan Senate. Senate Bill 3 is the Wetlands Protection Bill. This long- postponed environmental legislation is designed to stop the heedless destruction of Michigan's wetlands. By requiring a permit of any party desiring to fill, develop, or drain a wetland, the Department of Natural Resources will be able to deny alteration of wetlands that is not in the public interest. There is also a similar bill coming up in the House-House Bill 4049. Both bills designate criteria for what determines the public interest, and provides guidelines for revoking permits and publishing offenders.I A wetland may be a swamp, a marsh, a bog, a fresh water meadow, or any other area of land that is sufficiently inundated with water to allow for growth of acquatic life. The functions these ecosystems perform are many and diverse. For example, wetlands purify and recharge ground water supplies, prevent erosion by acting as buffers bet- ween open water and uplands, retain storm waters and thus con- trol floods, and act as reservoirs by releasing water during dry periods and holding it back during heavy rains and floods. Wetlands also provide feeding, nesting, and breeding grounds for many species of wildlife. Fur- tbermore, they offer numerous recreational opportunities for such things as fishing, hunting, bird watching, and hiking. Unfortunately, many people view a wetland as nothing more than a swamp to be drained, filled, and developed. For every acre of wetland that is destroyed, You can help it pass by writing to the Senator and Representative from your home district. All the information you need is posted on a big board in the Fishbowl which has been set up by PIRGIM for this purpose. Three-fourths of Michigan's wetlands have already been destroyed. Please help save the remainder of these valuable ecosystems. -Linda M. Wakeen Tenure To the Daily: John Sinkevic's article, "Student Tenure Input Possible" (March 24), does a fine job in presenting Vice President for Academic Affairs Harold Shapiro's comments about tenure yet there is virtually no mention of the criticisms made by the 20 students and other interested people who were also at the talk. This problem of readily and uncritically reporting ad- ministration statements (though not always accurately) and prin- ting student positions with ap- parent reluctance is part of a pat- tern that has occurred all to frequently since the Daily's management changeover earlier this year. That this would happen in a student-run newspaper is disconcerting and distressing. In Dr. Shapiro's presentation, he encouraged student par- ticipation in tenure proceedings in the form of a pressure group and this is exactly what has hap- pened in the Samoff case. Yet, Dr. Shapiro and other ad- ministrators refuse to discuss his case and by all evidence, the student impact has been minimal in this regard. In fact, the closed nature of tenure procedures plays a great accept the word of one or several people, but to find hard evidence instead. While stating that student evaluations of teaching are the most important part of student participation, the Vice President refused to support a move to make them mandatory (they are voluntary in 11 of the 24 LSA departments). By doing this, he assures that student impact will be haphazard at best; his reluc- tance to make specific guaran- tees or to institutionalize student participation in the tenure process (even in a non-voting role) casts grave doubt over the administration's commitment to the goal of a significant student input. While 71.4 per cent of all mal:e faculty members have tenure, only 31.5 per cent of women and 52.8 per cent of minorities have attained this position. In the LSA college, 78.5 per cent of men, 24.3 per cent of women, and 45.6 per cent of minorities have tenure. If the tenure process does not discriminate against women and minorities as Dr. Shapiro alleges, what possible explanation is there for the incredible racial and sexual stratification among faculty? Dr. Shapiro admits that currrent tenure procedures are imperfect and should be regularly open for reexamination. However, he refused to support the formation of a student-faculty task force to study tenure. How then, is thereto be a comprehensive reevaluation of the process? The administration's op- position to students having a voting role in tenure decisions is clear. Their view that students are not experienced or interested enough to make responsible the University is tacitly admit- ting that the quality of elucation could stand substantial in- provement. At the same time, the ad- ministration's actions belie their statement that they desire significant student input in all other asnects of temie procedure. I hope the Daily in its reporting, will do a better job ~in presenting both sides of this issue, and in critically analyzing' ad- ministration actions in the future. -Bruce Kozarsky Member, LSA Student Governmept March 26, 1979 " Film festival To the Daily: One of the most wonderful aspects of going to a film festival such as ours is the promise of bt knowing what you're going to see. Everything is a - surprise, everything is new, intense and occasionally enlightening. What surprised me again this year, however, was first of all hearing Cinema Guild mer- .bers hawking the incredibly ugly t- shirts designed by George Manupelli announcing that next year's festival was in considerable financial peril; and secondly, seeing on winner's night a horrible, self-centered inept film whose name I instantly forgot. The film was an hour-and-a-half long, was a grand prize winner, and was, like one of last year's winners, a "film about making a film." I walked out after five minutes, and didn't ask for my mney back. The Film Festival judges, however, are not only being irresponsible to flaunt such trash as their taste. They are en- danaerina the Festival itself. For !'" --- T 9 1.0 /" - - . I "'"..r.:' ["