Table 5

Detailed decomposition of change in experienced black-white wage gap among workers with only a high school diploma, by gender and region, for selected periods, 1979-2015

Panel A: Northeast 
Men Women
 1979-85  1985-96  1996-00  2000-07  2007-15  1979-15  1979-85  1985-96  1996-00  2000-07  2007-15  1979-15
Total change in gap (total observables + total unobservables) 1.12% 5.73% 4.48% -0.05% -0.96% 13.50% 2.81% 6.64% -0.21% 6.81% -0.67% 17.48%
Contribution form:
Total observables (quantities + prices) 1.89 1.26 0.83 -1.48 0.63 2.21 1.80 1.80 -0.36 0.53 0.09 3.30
Total quantities (experience + division & metro) 0.53 0.35 0.01 -1.44 0.66 -0.71 0.89 0.61 -0.51 -0.76 0.06 -0.48
Experience -0.06 -0.04 0.19 -0.20 0.04 -0.03 -0.20 -0.06 0.05 0.12 -0.15 -0.03
Division & metro 0.59 0.39 -0.18 -1.23 0.61 -0.69 1.08 0.66 -0.56 -0.88 0.21 -0.45
Total prices (experience + division & metro) 1.37 0.91 0.82 -0.04 -0.03 2.92 0.92 1.19 0.15 1.29 0.02 3.78
Experience 0.42 0.10 0.08 -0.07 0.14 0.43 0.36 0.56 -0.04 0.51 0.21 1.57
Division & metro 0.95 0.81 0.75 0.03 -0.16 2.49 0.56 0.63 0.19 0.78 -0.18 2.20
Total unobservables (discrimination + wage inequality) -0.78 4.47 3.65 1.43 -1.59 11.29 1.01 4.84 0.15 6.28 -0.76 14.18
“Quantities” (discrimination) -2.46 4.89 4.03 0.67 -3.08 9.68 0.96 4.25 0.59 5.74 -1.83 12.73
“Prices” (wage inequality) 1.68 -0.42 -0.38 0.76 1.49 1.62 0.05 0.59 -0.44 0.54 1.07 1.45
Panel B: Midwest 
Men Women
 1979-85  1985-96  1996-00  2000-07  2007-15  1979-15  1979-85  1985-96  1996-00  2000-07  2007-15  1979-15
Total change in gap (total observables + total unobservables) 1.86% 7.45% 1.22% 3.68% 4.41% 19.19% -4.15% 12.82% 1.38% 2.17% 8.59% 23.75%
Contribution form:
Total observables (quantities + prices) -1.24 2.50 0.64 1.72 2.20 6.91 -0.61 1.63 1.03 1.04 0.57 4.87
Total quantities (experience + division & metro) -0.30 1.67 -0.25 -0.12 0.08 1.46 0.13 0.85 0.11 -0.21 -0.22 0.86
Experience -0.33 0.38 0.16 -0.56 0.27 0.00 -0.26 0.02 0.26 -0.21 -0.01 0.01
Division & metro 0.02 1.29 -0.41 0.44 -0.18 1.46 0.39 0.83 -0.15 -0.01 -0.21 0.85
Total prices (experience + division & metro) -0.94 0.82 0.89 1.84 2.12 5.45 -0.74 0.79 0.92 1.25 0.79 4.01
Experience 0.42 0.13 -0.05 0.20 -0.21 0.42 0.43 0.46 -0.31 0.82 -0.38 1.14
Division & metro -1.35 0.69 0.94 1.64 2.33 5.04 -1.17 0.32 1.23 0.43 1.17 2.87
Total unobservables (discrimination + wage inequality) 3.10 4.95 0.57 1.96 2.21 12.28 -3.54 11.19 0.35 1.13 8.02 18.88
“Quantities” (discrimination) 1.38 6.00 0.93 1.37 1.11 11.84 -3.46 10.94 0.74 0.96 7.12 18.43
“Prices” (wage inequality) 1.73 -1.05 -0.36 0.59 1.10 0.44 -0.08 0.25 -0.39 0.17 0.90 0.45
Panel C: South
Men Women
 1979-85  1985-96  1996-00  2000-07  2007-15  1979-15  1979-85  1985-96  1996-00  2000-07  2007-15  1979-15
Total change in gap (total observables + total unobservables) 1.58% -0.47% -5.96% 3.76% -1.04% -4.34% 1.04% 4.12% -4.44% 1.31% 2.60% 2.39%
Contribution form:
Total observables (quantities + prices) 0.47 0.41 -0.47 -0.39 0.93 0.11 1.15 0.81 -0.57 -0.02 0.53 1.02
Total quantities (experience + division & metro) 0.50 0.25 -0.61 0.12 0.31 0.00 0.70 0.71 -0.70 -0.25 0.38 0.11
Experience -0.25 0.06 -0.09 -0.03 -0.02 -0.24 -0.24 -0.04 -0.03 0.03 -0.07 -0.22
Division & metro 0.75 0.19 -0.52 0.15 0.33 0.24 0.94 0.74 -0.67 -0.28 0.45 0.32
Total prices (experience + division & metro) -0.03 0.16 0.14 -0.52 0.63 0.11 0.45 0.10 0.13 0.23 0.15 0.91
Experience 0.43 0.37 -0.05 -0.02 0.00 0.57 0.04 0.76 -0.18 0.25 0.12 1.09
Division & metro -0.46 -0.21 0.19 -0.50 0.63 -0.46 0.41 -0.65 0.31 -0.02 0.04 -0.17
Total unobservables (discrimination + wage inequality) 1.11 -0.88 -5.49 4.15 -1.98 -4.45 -0.11 3.31 -3.87 1.34 2.07 1.36
“Quantities” (discrimination) -1.34 0.71 -5.92 3.64 -3.87 -6.09 -1.57 2.79 -3.69 0.77 1.58 -0.75
“Prices” (wage inequality) 2.45 -1.59 0.44 0.51 1.89 1.65 1.46 0.52 -0.18 0.57 0.49 2.11
Panel D: West
Men Women
 1979-85  1985-96  1996-00  2000-07  2007-15  1979-15  1979-85  1985-96  1996-00  2000-07  2007-15  1979-15
Total change in gap (total observables + total unobservables) -3.16% 1.86% 0.51% 7.18% -1.46% 9.69% -1.02% 12.76% -4.72% -0.89% 10.92% 13.89%
Contribution form:
Total observables (quantities + prices) -3.43 2.25 -1.66 3.63 1.04 3.91 -2.87 -0.46 3.65 0.04 3.16 5.28
Total quantities (experience + division & metro) -0.42 0.45 -0.88 2.06 -0.06 1.64 2.29 -1.49 1.04 0.38 0.74 1.71
Experience -0.42 0.52 -0.46 0.08 0.25 0.03 -0.14 -0.12 0.04 -0.01 0.03 -0.15
Division & metro 0.00 -0.07 -0.42 1.97 -0.31 1.61 2.43 -1.37 1.00 0.40 0.71 1.87
Total prices (experience + division & metro) -3.01 1.80 -0.78 1.57 1.10 2.27 -5.16 1.03 2.61 -0.34 2.41 3.56
Experience 0.04 0.09 -0.01 -0.03 0.22 0.21 0.21 0.22 0.04 0.22 0.21 0.83
Division & metro -3.05 1.71 -0.77 1.61 0.88 2.06 -5.37 0.81 2.57 -0.56 2.20 2.73
Total unobservables (discrimination + wage inequality) 0.27 -0.39 2.18 3.54 -2.50 5.78 1.85 13.22 -8.36 -0.93 7.76 8.61
“Quantities” (discrimination) -1.75 0.73 2.47 3.03 -3.59 5.29 1.23 14.52 -8.76 -1.24 7.49 8.80
“Prices” (wage inequality) 2.02 -1.12 -0.29 0.52 1.09 0.49 0.62 -1.30 0.40 0.30 0.28 -0.19

Note: Total unobservables include factors such as racial discrimination, unobservable skills, and wage inequality. Total observables include education, experience, region of residence, and metro status. Experienced workers have 11 to 20 years of experience.

Source: EPI analysis of Current Population Survey (CPS) Outgoing Rotation Group microdata

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