Detailed decomposition of change in men’s black-white wage gap, construction and manufacturing industries, by potential experience, for selected periods, 1979-2015
| New entrant men, manufacturing | New entrant men, construction | |||||||||||
| 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 changes in gap (total observables + total unobservables) | 11.38% | 4.04% | -8.64% | 3.91% | 0.30% | 3.14% | 1.95% | -6.80% | -1.10% | 1.80% | -5.15% | -9.88% |
| Contribution form: | ||||||||||||
| Total observables (quantities + prices) | 4.49 | 3.90 | -5.40 | 3.18 | -3.89 | 0.87 | -0.30 | -3.10 | -0.98 | 0.65 | -0.17 | -4.68 |
| Total quantities (education + experience + division & metro) | 1.27 | 4.40 | -6.64 | 4.69 | -4.43 | -0.31 | -3.75 | -2.08 | -1.68 | 1.73 | -0.83 | -5.14 |
| Education | -0.29 | 3.02 | -3.46 | 2.04 | -1.76 | 0.09 | -2.55 | -1.24 | -0.34 | 0.68 | -1.19 | -3.13 |
| Experience | 0.77 | 1.45 | -2.28 | 2.79 | -3.23 | 0.45 | -0.15 | -0.23 | 0.24 | 0.02 | 0.88 | 0.54 |
| Division & metro | 0.78 | -0.07 | -0.90 | -0.14 | 0.55 | -0.85 | -1.05 | -0.61 | -1.57 | 1.04 | -0.52 | -2.55 |
| Total prices (education + experience + division & metro) | 3.22 | -0.50 | 1.24 | -1.51 | 0.54 | 1.18 | 3.45 | -1.02 | 0.70 | -1.08 | 0.66 | 0.46 |
| Education | 3.26 | 0.32 | 0.71 | -0.59 | 0.74 | 2.73 | 0.41 | -0.41 | 0.80 | -0.13 | 0.81 | 1.17 |
| Experience | -0.05 | 0.11 | 0.00 | 0.41 | -0.07 | 0.59 | 0.68 | 0.83 | 0.31 | -1.01 | 0.09 | 0.59 |
| Division & metro | 0.02 | -0.92 | 0.53 | -1.34 | -0.13 | -2.13 | 2.37 | -1.44 | -0.41 | 0.05 | -0.24 | -1.30 |
| Total unobservables (discrimination + wage inequality) | 6.89 | 0.14 | -3.24 | 0.73 | 4.19 | 2.28 | 2.25 | -3.69 | -0.13 | 1.15 | -4.99 | -5.21 |
| “Quantities” (discrimination) | 5.68 | 0.54 | -3.38 | 0.17 | 2.56 | 0.28 | 1.67 | -2.18 | -0.82 | 1.79 | -7.09 | -5.09 |
| “Prices” (wage inequality) | 1.21 | -0.40 | 0.15 | 0.56 | 1.62 | 1.99 | 0.57 | -1.51 | 0.70 | -0.64 | 2.11 | -0.12 |
| Experienced men, manufacturing | Experienced men, construction | |||||||||||
| 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 unobervables) | 5.76% | 1.55% | -2.17% | 3.84% | -1.24% | 5.68% | 1.00% | 0.86% | -3.80% | 0.57% | 0.38% | -3.02% |
| Contribution form: | ||||||||||||
| Total observables (quantities + prices) | 3.83 | -0.18 | -1.39 | 0.96 | -1.34 | 0.05 | 1.43 | -1.66 | -1.54 | -2.19 | -0.14 | -6.44 |
| Total quantities (education + experience + division & metro) | 0.70 | -1.19 | -1.86 | 0.43 | -1.68 | -4.29 | -1.79 | -1.55 | -1.93 | -0.66 | 0.04 | -6.39 |
| Education | -0.03 | -1.47 | -1.19 | 0.77 | -2.25 | -3.95 | -2.28 | -1.33 | 0.24 | -2.18 | 0.34 | -4.96 |
| Experience | -0.25 | 0.25 | 0.02 | -0.14 | -0.02 | 0.03 | 0.24 | -0.11 | -1.08 | 0.76 | -0.15 | -0.72 |
| Division & metro | 0.99 | 0.04 | -0.69 | -0.20 | 0.58 | -0.37 | 0.24 | -0.11 | -1.08 | 0.76 | -0.15 | -0.72 |
| Total prices (education + experience + division & metro) | 3.12 | 1.01 | 0.47 | 0.53 | 0.34 | 4.34 | 3.22 | -0.12 | 0.39 | -1.53 | -0.19 | -0.05 |
| Education | 2.06 | 1.75 | 0.42 | 0.61 | -0.10 | 4.48 | -1.02 | 3.41 | 1.28 | 0.83 | -0.55 | 6.31 |
| Experience | 0.07 | 0.13 | -0.07 | 0.19 | 0.03 | 0.35 | 2.12 | -1.77 | -0.45 | -1.18 | 0.18 | -3.18 |
| Division & metro | 0.98 | -0.86 | 0.13 | -0.26 | 0.41 | -0.49 | 2.12 | -1.77 | -0.45 | -1.18 | 0.18 | -3.18 |
| Total unobservables (discrimination + wage Inequality) | 1.94 | 1.72 | -0.79 | 2.88 | 0.10 | 5.64 | -0.42 | 2.52 | -2.26 | 2.75 | 0.52 | 3.43 |
| “Quantities” (discrimination) | -0.46 | 1.78 | -0.71 | 2.42 | -2.86 | 2.29 | -1.43 | 3.78 | -2.82 | 2.64 | -1.84 | 2.11 |
| “Prices” (wage inequality) | 2.40 | -0.06 | -0.08 | 0.46 | 2.97 | 3.35 | 1.00 | -1.26 | 0.56 | 0.12 | 2.36 | 1.31 |
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.
Source: EPI analysis of Current Population Survey (CPS) Outgoing Rotation Group microdata