Table 2

Detailed decomposition of change in new entrant black-white wage gap, by gender and educational attainment for selected periods, 1979—2015

All new entrant (0 to 10 years of work experience)
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) 5.77% 0.25% -3.78% 2.31% 3.98% 3.20% 5.33% 6.28% -4.91% 1.44% 7.58% 10.00%
Contribution from:
Total observables (quantities + prices) 1.04 1.38 -2.04 0.74 1.55 1.21 1.14 5.53 -0.66 0.43 3.17 8.91
Total quantities (education + experience + region & metro) -1.34 0.20 -1.97 1.19 0.27 -1.53 1.68 4.76 -1.08 0.89 2.37 7.68
Education -1.77 0.21 -1.06 -0.47 1.00 -1.98 0.83 3.64 -0.50 1.16 1.14 6.25
Experience 0.33 0.10 -0.33 1.39 -0.91 0.91 0.28 0.98 0.22 -0.61 1.09 1.61
Region & metro 0.10 -0.11 -0.58 0.26 0.18 -0.46 0.57 0.14 -0.81 0.35 0.14 -0.17
Total prices (education + experience + region & metro) 2.37 1.18 -0.07 -0.45 1.28 2.74 -0.54 0.78 0.42 -0.47 0.80 1.24
Education 2.87 0.75 0.33 -0.15 0.52 2.90 1.08 0.85 0.30 0.10 1.03 2.78
Experience 0.11 0.43 -0.31 0.05 0.34 0.42 -1.17 0.19 0.01 0.04 -0.07 -0.29
Region & metro -0.61 -0.01 -0.08 -0.35 0.41 -0.58 -0.46 -0.27 0.11 -0.61 -0.16 -1.25
Total unobservables (discrimination + wage inequality) 4.73 -1.13 -1.74 1.58 2.43 1.99 4.19 0.75 -4.26 1.02 4.41 1.09
“Quantities” (discrimination) 3.72 -0.64 -2.27 0.99 1.28 -0.13 3.90 0.46 -4.41 0.90 3.40 -0.45
“Prices” (wage inequality) 1.01 -0.49 0.53 0.58 1.14 2.12 0.29 0.29 0.15 0.12 1.02 1.54
High school only new entrants
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) 5.01% -3.29% -3.43% 3.78% 2.91% -0.08% 3.18% 1.54% -4.93% -0.31% 3.74% -1.8%
Contribution from:
Total observables (quantities + prices) 1.98 -0.69 -1.78 2.57 0.15 0.87 0.51 0.79 -0.56 0.28 0.96 1.35
Total quantities (education + experience + region & metro) 2.19 -1.50 -1.48 2.47 -1.40 -0.65 1.88 0.81 -1.15 -0.29 1.21 0.60
Experience 2.30 -1.13 -0.89 2.13 -1.31 0.35 1.35 0.70 -0.41 -0.49 1.58 1.26
Region & metro -0.11 -0.37 -0.59 0.34 -0.10 -1.00 0.53 0.11 -0.75 0.20 -0.37 -0.66
Total prices (education + experience + region & metro) -0.21 0.82 -0.30 0.10 1.55 1.52 -1.37 -0.02 0.60 0.57 -0.25 0.75
Experience -0.04 0.25 0.18 -0.19 0.42 0.56 -0.94 0.30 0.12 0.14 -0.02 0.24
Region & metro -0.17 0.57 -0.48 0.28 1.13 0.96 -0.43 -0.31 0.48 0.43 -0.23 0.51
Total unobservables (discrimination + wage inequality) 3.03 -2.61 -1.65 1.21 2.77 -0.95 2.66 0.75 -4.37 -0.59 2.78 -3.18
“Quantities” (discrimination) 2.17 -1.18 -2.16 0.53 2.46 -1.40 2.09 0.77 -4.32 -0.64 2.47 -3.62
“Prices” (wage inequality) 0.87 -1.42 0.51 0.68 0.31 0.44 0.58 -0.01 -0.05 0.05 0.31 0.45
Bachelor’s degree only new entrants
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) 7.73% -0.05% -1.31% 0.67% 3.71% 4.89% 6.56% -0.14% -5.8% 0.00% 5.86% -1.83%
Contribution from:
Total observables (quantities + prices) -2.11 0.95 -0.39 -1.06 2.30 -0.39 -0.32 1.20 -0.79 -1.66 1.26 -1.16
Total quantities (education + experience + region & metro) -0.69 1.60 -0.43 -0.02 1.77 2.06 -0.64 2.37 -1.22 -0.61 0.69 0.50
Experience -2.04 1.78 0.25 -0.26 0.56 1.58 -1.71 2.56 -0.22 -0.45 0.01 1.45
Region & metro 1.34 -0.18 -0.68 0.24 1.21 0.48 1.08 -0.19 -1.01 -0.16 0.68 -0.96
Total prices (education + experience + region & metro) -1.41 -0.65 0.04 -1.05 0.53 -2.44 0.31 -1.17 0.43 -1.05 0.57 -1.66
Experience -0.33 0.07 0.20 -0.24 0.19 0.03 -0.15 -1.30 0.71 -0.12 0.01 -0.79
Region & metro -1.08 -0.72 -0.16 -0.81 0.34 -2.47 0.46 0.13 -0.28 -0.93 0.56 -0.87
Total unobservables (discrimination + wage inequality) 9.84 -1.00 -0.92 1.74 1.41 5.28 6.89 -1.33 -4.99 1.67 4.60 -0.67
“Quantities” (discrimination) 8.94 -1.12 -1.48 1.44 -0.12 2.57 6.53 -1.81 -5.03 1.56 3.41 -2.33
“Prices” (wage inequality) 0.89 0.12 0.57 0.30 1.53 2.71 0.36 0.47 0.04 0.11 1.18 1.67
Bachelor’s degree or more education new entrants
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) 12.5% 2.99% -4.31% 0.84% 2.40% 6.08% 6.56% 3.44% -7.95% 0.62% 6.82% 0.82%
Contribution from:
Total observables (quantities + prices) -1.61 1.56 -1.15 -1.55 0.80 -2.01 0.16 1.33 -1.01 -2.94 1.56 -2.51
Total quantities (education + experience + region & metro) -1.14 1.91 -1.41 0.09 0.00 -0.12 -0.05 1.90 -1.78 -0.95 0.69 -1.03
Education -0.90 0.17 -0.34 -0.47 -0.42 -1.56 0.99 -0.17 -0.59 -0.44 -0.62 -1.52
Experience -1.52 1.48 -0.33 0.34 -0.40 0.80 -1.84 2.07 -0.09 -0.56 0.59 1.18
Region & metro 1.29 0.27 -0.75 0.22 0.83 0.64 0.80 0.01 -1.10 0.05 0.72 -0.69
Total prices (education + experience + region & metro) -0.47 -0.35 0.26 -1.64 0.80 -1.88 0.21 -0.57 0.77 -2.00 0.87 -1.48
Education 0.92 0.18 -0.15 0.14 -0.19 0.51 -0.12 0.26 0.01 -0.25 0.06 -0.01
Experience -0.45 0.07 0.18 -0.33 0.33 -0.08 -0.15 -0.82 0.45 -0.02 0.00 -0.45
Region & metro -0.94 -0.61 0.23 -1.45 0.66 -2.31 0.48 0.00 0.30 -1.72 0.81 -1.02
Total unobservables (discrimination + wage inequality) 14.15 1.43 -3.16 2.39 1.61 8.09 6.41 2.11 -6.94 3.57 5.26 3.33
“Quantities” (discrimination) 14.09 1.36 -3.63 2.15 0.06 6.04 6.24 1.78 -7.08 3.58 3.76 1.76
“Prices” (wage inequality) 0.07 0.07 0.48 0.24 1.55 2.05 0.16 0.33 0.14 -0.01 1.50 1.57

 

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. Change in gaps are of adjusted average hourly wages.

Source: EPI analysis of Current Population Survey (CPS) Outgoing Rotation Group microdata

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