Share of change in new entrant men’s black-white wage gaps accounted for by observable and unobservable factors, by time period, 1979—2015

Total observables  Total unobservables  Total
 1979–1985 1.04 4.73 0
 1985–1996 1.38 -1.13 0
 1996–2000 -2.04 -1.74 0
 2000–2007 0.74 1.58 0
 2007–2015 1.55 2.43 0

Note: The * signifies total net change labels where the change is statistically insignificant. Experienced workers have 11 to 20 years of experience. New entrants have 0 to 10 years of experience. Change in gaps are of adjusted average hourly wages. Labels on top of bars indicate net change in the black-white wage gap. 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


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