Share of change in men’s black-white wage gaps accounted for by observable and unobservable factors, by potential experience and educational attainment, 1979–2015

Total observables Total unobservables  Total
New entrant men, high school only 0.87 -0.95 0
New entrant men, bachelor’s degree only -0.39 5.28 0
New entrant men, bachelor’s degree or more -2.01 8.09 0
Experienced men, high school only 0.35 1.77 0
Experienced men, bachelor’s degree only -0.40 5.47 0
Experienced men, bachelor’s degree or more -0.25 9.22 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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