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Wage inequality: The role of education

Author

Listed:
  • Edmond Berisha

    (Feliciano School of Business, Montclair State University)

  • Ram Dubey

    (Montclair State University)

  • Orkideh Gharehgozli

    (Montclair State University)

  • Zaman Zamanian

    (Montclair State University)

Abstract

We hypothesize that the role of education in driving wage inequality is not the same across three racial groups in the United States. Using the Current Population Survey (CPS) data for the period 2000-2021, we show that education weighs at most $32\%$ in explaining wage inequality. Further, we observe a decrease in the role of education in explaining wage inequality among Black and White Americans.

Suggested Citation

  • Edmond Berisha & Ram Dubey & Orkideh Gharehgozli & Zaman Zamanian, 2025. "Wage inequality: The role of education," Economics Bulletin, AccessEcon, vol. 45(1), pages 606-616.
    • Handle: RePEc:ebl:ecbull:eb-25-00230
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    File URL: http://www.accessecon.com/Pubs/EB/2025/Volume45/EB-25-V45-I1-P54.pdf
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    More about this item

    Keywords

    Decomposition; Education; Theil Index; Inequality;
    All these keywords.

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • A2 - General Economics and Teaching - - Economic Education and Teaching of Economics

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