Black workers’ wages are more sensitive to labor market slack: Regression coefficients showing change in Black and white worker hourly and annual wages given a 1-percentage-point increase in the unemployment rate

Outcome Regression coefficient
Black -0.756
White -0.522
Black -0.487
White -0.289
Black -1.75
White -0.45
Black  -1.25
White -0.57

Notes: For all regressions, a three-year centered moving average of all variables is used, with Newey-West calculations of standard errors. Controls in the wage and annual earnings regressions include inflation, productivity growth, a time trend, and dummies for the following periods: 1979–1988, 1989–2000, 2001–2007, and 2008–2014. The annual earnings measure includes only workers with earnings during the year.

Source: Author’s analysis of Current Population Survey microdata (EPI 2021a; Flood et al. 2021) and CPS, CPI, and productivity data from the Bureau of Labor Statistics (BLS-CPS 2021; BLS-CPI 2021; BLS-LPC 2021).

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