Appendix Table 2

Decomposition of change in black-white wage gaps with union membership and union density, by gender and potential experience, 1983-2015

New entrant men New entrant women
 1983-89  1989-96  1996-00  2000-07  2007-15  1983-15  1983-89  1989-96  1996-00  2000-07  2007-15  1983-15
Total change in gap (total observables + total unobservables) 4.75% -2.27% -2.82% 2.13% 4.60% 1.58% 5.87% 2.82% -4.46% 1.35% 8.69% 7.64%
Contribution from:                        
Total observables (quantities + prices) 3.60 -0.95 -0.74 0.58 2.00 1.80 5.27 2.32 0.14 0.31 3.93 8.84
Total quantities (education + experience + region & metro + union membership) 1.48 -1.14 -1.46 1.32 0.40 -0.67 4.42 2.01 -0.80 1.03 2.87 6.90
Education, experience, region, metro status 1.21 -1.01 -1.53 1.06 0.43 -1.09 4.21 2.10 -0.70 0.84 2.85 6.77
Unions 0.27 -0.13 0.07 0.26 -0.03 0.42 0.21 -0.08 -0.10 0.19 0.02 0.12
Total prices (education + experience + region & metro + industry + occupation) 2.12 0.19 0.72 -0.74 1.60 2.47 0.85 0.31 0.94 -0.71 1.06 1.95
Education, experience, region, metro status 1.83 0.08 0.30 -0.48 1.38 1.79 0.50 0.16 0.58 -0.52 0.80 1.14
Unions 0.28 0.11 0.42 -0.26 0.21 0.68 0.35 0.14 0.37 -0.20 0.26 0.80
Total unobservables (discrimination + wage Inequality) 1.15 -1.32 -2.08 1.55 2.60 -0.22 0.59 0.50 -4.60 1.04 4.76 -1.20
“Quantities” (discrimination) 1.27 -1.19 -2.66 0.97 1.26 -2.48 0.40 0.24 -4.81 0.93 3.64 -2.81
“Prices” (wage inequality) -0.11 -0.13 0.58 0.58 1.34 2.26 0.20 0.26 0.21 0.11 1.12 1.61
Experienced men Experienced women
 1983-89  1989-96  1996-00  2000-07  2007-15  1983-15  1983-89  1989-96  1996-00  2000-07  2007-15  1983-15
Total change in gap (total observables + total unobservables) 2.81% 0.41% -1.43% 2.48% -0.35% 3.00% 3.67% 3.18% -0.56% 1.68% 3.10% 9.26%
Contribution from:                        
Total observables (quantities + prices) 2.09 -1.27 0.38 -0.36 1.11 0.38 2.57 0.52 0.52 1.09 1.27 5.05
Total quantities (education + experience + region & metro + union membership) -0.04 -2.37 -0.47 -0.11 -0.33 -3.93 1.91 -0.88 -0.34 1.41 0.28 1.52
Education, experience, region, metro status -0.58 -2.21 -0.52 -0.49 -0.26 -4.54 1.38 -0.79 -0.37 1.05 0.20 0.77
 Unions 0.53 -0.16 0.05 0.38 -0.07 0.61 0.53 -0.09 0.03 0.36 0.09 0.75
Total prices (education + experience + region & metro + industry + occupation) 2.13 1.10 0.85 -0.25 1.43 4.31 0.66 1.40 0.87 -0.31 0.98 3.53
Education, experience, region, metro status 2.32 0.86 0.29 -0.11 1.15 3.32 0.53 1.07 0.10 -0.21 0.69 1.89
Unions -0.19 0.23 0.56 -0.14 0.29 0.99 0.13 0.33 0.77 -0.10 0.30 1.64
Total unobservables (discrimination + wage inequality) 0.72 1.69 -1.81 2.83 -1.46 2.61 1.09 2.66 -1.08 0.59 1.83 4.21
“Quantities” (discrimination) 0.94 1.58 -2.01 1.95 -3.53 -0.24 0.90 2.23 -1.04 0.11 0.76 2.31
“Prices” (wage inequality) -0.22 0.11 0.21 0.89 2.07 2.85 0.20 0.43 -0.05 0.48 1.07 1.90

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

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