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Labor market dynamics and black–white earnings gaps

Author

Listed:
  • Daly, Mary C.
  • Hobijn, Bart
  • Pedtke, Joseph H.

Abstract

Earnings gaps between black and white workers have widened over the past 30–40 years. This increase is not explained by differences in observed demographics or the industry and occupational composition of employment. We suggest that variation in labor market dynamics between black and white workers are important. Disparities in job switching, job loss, and associated wage growth result in flatter career wage profiles for black workers and widening earnings gaps over the work life.

Suggested Citation

  • Daly, Mary C. & Hobijn, Bart & Pedtke, Joseph H., 2020. "Labor market dynamics and black–white earnings gaps," Economics Letters, Elsevier, vol. 186(C).
    • Handle: RePEc:eee:ecolet:v:186:y:2020:i:c:s0165176519304094
    DOI: 10.1016/j.econlet.2019.108807
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    References listed on IDEAS

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    More about this item

    Keywords

    Earnings gaps; Labor market dynamics; Wage escalators;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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