Economics, Econometrics and Finance
2 years ago

Growing wage gaps between white and black males linked to skill distribution stretching.

Southern Economic Journal
Male White‐Black Wage Gaps, 1979‐1994: A Distributional Analysis
William M. Rodgers

Paper Summary

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The study looked at why the wage gap between white and black men changed from 1979 to 1994. They found that the difference in wages increased because the range of skills needed for jobs became wider during the 1980s. This change had the biggest impact on wages in the middle and upper skill levels. The study also showed that the wage gap was most affected at the extreme ends of the skill distribution.