Detailed decomposition of change in new entrant 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) | 6.50% | 2.18% | 3.23% | 0.06% | -5.82% | 7.13% | 1.70% | -1.74% | 1.43% | 8.36% | -6.13% | 7.62% |
| Contribution forms: | ||||||||||||
| Total observables (quantities + prices) | 2.37 | -0.09 | 0.21 | 0.17 | -1.12 | 0.90 | 3.30 | 1.22 | 4.25 | -2.99 | -1.94 | 4.33 |
| Total quantities (experience + division & metro) | 2.15 | -0.21 | -0.34 | 0.85 | -2.43 | -0.10 | 2.69 | 1.00 | 1.16 | -1.85 | -0.93 | 1.35 |
| Experience | 2.15 | -0.21 | -0.34 | 0.85 | -2.43 | -0.10 | 1.75 | 0.67 | 1.45 | -1.63 | -0.67 | 1.33 |
| Division & metro | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.94 | 0.33 | -0.29 | -0.22 | -0.26 | 0.01 |
| Total prices (experience + division & metro) | 0.22 | 0.13 | 0.55 | -0.67 | 1.32 | 1.00 | 0.60 | 0.22 | 3.09 | -1.15 | -1.01 | 2.99 |
| Experience | 0.22 | 0.13 | 0.55 | -0.67 | 1.32 | 1.00 | -0.59 | -0.19 | -0.23 | 0.77 | 1.25 | 0.85 |
| Division & metro | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1.20 | 0.41 | 3.32 | -1.91 | -2.26 | 2.13 |
| Total unobservables (discrimination + wage inequality) | 4.13 | 2.27 | 3.02 | -0.12 | -4.70 | 6.22 | -1.60 | -2.96 | -2.82 | 11.36 | -4.19 | 3.29 |
| “Quantities” (discrimination) | 3.43 | 2.69 | 2.81 | -0.54 | -4.40 | 5.75 | -2.94 | -3.38 | -2.42 | 10.88 | -3.97 | 2.23 |
| “Prices” (wage inequality) | 0.70 | -0.42 | 0.21 | 0.42 | -0.30 | 0.48 | 1.34 | 0.42 | -0.40 | 0.47 | -0.22 | 1.06 |
| 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) | 13.01% | 2.64% | -4.60% | 8.16% | 3.91% | 15.60% | 1.61% | 6.79% | -0.62% | -2.09% | 2.87% | 7.29% |
| Contribution forms: | ||||||||||||
| Total observables (quantities + prices) | 3.75 | 1.04 | -1.56 | 4.87 | 2.62 | 8.59 | -1.38 | 3.26 | -2.32 | 1.92 | 3.84 | 5.41 |
| Total quantities (experience + division & metro) | 4.65 | -0.54 | -2.00 | 3.40 | -1.17 | 2.29 | -0.11 | 3.48 | -3.93 | 2.17 | 0.33 | 1.50 |
| Experience | 4.38 | -1.41 | -1.46 | 2.87 | -1.26 | 1.13 | 1.38 | 0.93 | -3.11 | 2.83 | -0.19 | 0.77 |
| Division & metro | 0.27 | 0.87 | -0.54 | 0.53 | 0.09 | 1.16 | -1.50 | 2.54 | -0.81 | -0.67 | 0.52 | 0.73 |
| Total prices (experience + division & metro) | -0.90 | 1.58 | 0.45 | 1.47 | 3.79 | 6.31 | -1.27 | -0.22 | 1.61 | -0.25 | 3.50 | 3.91 |
| Experience | 0.06 | 0.41 | 0.34 | -0.78 | 0.94 | 0.60 | -0.54 | 0.28 | -0.02 | -0.05 | -0.17 | -0.12 |
| Division & metro | -0.96 | 1.17 | 0.11 | 2.25 | 2.86 | 5.70 | -0.73 | -0.50 | 1.63 | -0.20 | 3.68 | 4.02 |
| Total unobservables (discrimination + wage inequality) | 9.26 | 1.59 | -3.04 | 3.29 | 1.28 | 7.01 | 2.99 | 3.53 | 1.70 | -4.01 | -0.97 | 1.88 |
| “Quantities” (discrimination) | 8.16 | 3.43 | -3.44 | 2.06 | 2.29 | 7.21 | 2.92 | 3.54 | 2.05 | -4.48 | -1.26 | 1.51 |
| “Prices” (wage inequality) | 1.10 | -1.84 | 0.40 | 1.23 | -1.00 | -0.21 | 0.07 | 0.00 | -0.35 | 0.47 | 0.29 | 0.37 |
| 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) | 3.42% | -5.54% | -3.05% | 2.60% | 4.64% | -3.53% | 2.31% | 2.34% | -8.08% | -1.19% | 5.50% | -5.90% |
| Contribution forms: | ||||||||||||
| Total observables (quantities + prices) | 0.55 | -0.26 | -1.05 | 1.73 | 0.18 | 0.72 | -0.09 | 1.54 | -0.99 | -0.71 | 2.41 | 0.97 |
| Total quantities (experience + division & metro) | 1.82 | -0.10 | -1.55 | 2.10 | -1.12 | 0.50 | 1.03 | 1.92 | -1.07 | -1.44 | 2.33 | 0.91 |
| Experience | 1.66 | -0.06 | -1.08 | 1.85 | -1.14 | 0.82 | 0.68 | 1.18 | 0.10 | -1.63 | 2.61 | 1.47 |
| Division & metro | 0.15 | -0.04 | -0.47 | 0.25 | 0.02 | -0.32 | 0.35 | 0.74 | -1.18 | 0.19 | -0.28 | -0.55 |
| Total prices (experience + division & metro) | -1.27 | -0.16 | 0.50 | -0.37 | 1.30 | 0.23 | -1.12 | -0.38 | 0.08 | 0.73 | 0.07 | 0.06 |
| Experience | -0.26 | 0.27 | 0.01 | 0.05 | 0.29 | 0.45 | -0.73 | 0.03 | -0.12 | 0.14 | 0.43 | -0.04 |
| Division & metro | -1.01 | -0.42 | 0.50 | -0.42 | 1.01 | -0.22 | -0.39 | -0.41 | 0.20 | 0.59 | -0.36 | 0.10 |
| Total unobservables (discrimination + wage inequality) | 2.87 | -5.29 | -2.00 | 0.87 | 4.46 | -4.26 | 2.40 | 0.80 | -7.09 | -0.48 | 3.10 | -6.87 |
| “Quantities” (discrimination) | 2.25 | -3.83 | -3.51 | 0.80 | 3.50 | -5.62 | 1.78 | 0.42 | -7.15 | -0.52 | 2.77 | -7.97 |
| “Prices” (wage inequality) | 0.62 | -1.46 | 1.51 | 0.07 | 0.96 | 1.36 | 0.62 | 0.38 | 0.06 | 0.03 | 0.33 | 1.10 |
| 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) | -9.02% | 3.56% | -5.98% | 10.11% | 6.66% | 8.10% | -1.02% | 12.76% | -4.72% | -0.89% | 10.92% | 13.89% |
| Contribution forms: | ||||||||||||
| Total observables (quantities + prices) | -2.13 | -3.21 | 2.08 | 5.25 | 2.26 | 6.01 | -2.87 | -0.46 | 3.65 | 0.04 | 3.16 | 5.28 |
| Total quantities (experience + division & metro) | 2.39 | -6.73 | 2.80 | 3.38 | -0.10 | 1.10 | 2.29 | -1.49 | 1.04 | 0.38 | 0.74 | 1.71 |
| Experience | 2.08 | -6.27 | 3.21 | 1.98 | -0.25 | 0.26 | 2.10 | 0.03 | -0.38 | 0.65 | -0.55 | 1.01 |
| Division & metro | 0.32 | -0.46 | -0.41 | 1.39 | 0.15 | 0.84 | 0.20 | -1.52 | 1.41 | -0.27 | 1.30 | 0.71 |
| Total prices (experience + division & metro) | -4.52 | 3.52 | -0.72 | 1.88 | 2.36 | 4.91 | -5.16 | 1.03 | 2.61 | -0.34 | 2.41 | 3.56 |
| Experience | 0.53 | -0.22 | 0.82 | -0.46 | 0.88 | 1.12 | -1.52 | 1.04 | 1.44 | -1.34 | 2.06 | 2.18 |
| Division & metro | -5.05 | 3.75 | -1.54 | 2.34 | 1.48 | 3.78 | -3.63 | -0.01 | 1.17 | 1.00 | 0.35 | 1.38 |
| Total unobservables (discrimination + wage inequality) | -6.89 | 6.77 | -8.06 | 4.85 | 4.40 | 2.09 | 1.85 | 13.22 | -8.36 | -0.93 | 7.76 | 8.61 |
| “Quantities” (discrimination) | -7.35 | 8.23 | -7.93 | 4.19 | 3.80 | 2.67 | 1.23 | 14.52 | -8.76 | -1.24 | 7.49 | 8.80 |
| “Prices” (wage inequality) | 0.45 | -1.46 | -0.13 | 0.66 | 0.60 | -0.59 | 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. New entrants have 0 to 10 years of experience.
Source: EPI analysis of Current Population Survey (CPS) Outgoing Rotation Group microdata