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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
    as

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    References listed on IDEAS

    as
    1. Gary S. Becker, 1994. "Introduction to the First Edition of Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition, pages 11-14, National Bureau of Economic Research, Inc.
    2. Hatton, Timothy J. & Williamson, Jeffrey G., 2008. "The Impact of Immigration: Comparing Two Global Eras," World Development, Elsevier, vol. 36(3), pages 345-361, March.
    3. Robert J. Gordon & Ian Dew-Becker, 2008. "Controversies about the Rise of American Inequality: A Survey," NBER Working Papers 13982, National Bureau of Economic Research, Inc.
    4. Gary S. Becker, 1975. "Summary and Conclusions, Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, Second Edition," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, Second Edition, pages 231-237, National Bureau of Economic Research, Inc.
    5. Barry R. Chiswick, 1971. "Earnings Inequality and Economic Development," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 85(1), pages 21-39.
    6. Gary S. Becker, 1975. "Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, Second Edition," NBER Books, National Bureau of Economic Research, Inc, number beck75-1, October.
    7. Gary S. Becker, 1994. "Introduction to the Second Edition of Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition, pages 3-10, National Bureau of Economic Research, Inc.
    8. Gary S. Becker, 1975. "Appendix A: Sources and Methods, Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, Second Edition," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, Second Edition, pages 238-256, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

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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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