Earnings Gaps in the Aftermath of COVID-19

Vittoria Dicandia

Economic Commentary, 2026, vol. 2026, issue 15, 12

Abstract: This Economic Commentary examines differences between the earnings of white men and those of Black and Hispanic men before and after the COVID-19 pandemic. Following larger initial employment losses for Black and Hispanic men, after the pandemic this group experienced a narrower earnings gap relative to white men, bringing the median log hourly earnings gap to its lowest level of the twenty-first century. The analysis shows that this narrowing extends across both the earnings distribution and occupation groups and is not driven by changes in workforce age or education composition. The evidence indicates that the post-pandemic narrowing reflects broad-based relative changes in earnings rather than effects confined to lower-earning workers or to economy-wide earnings compression alone.

Date: 2026
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DOI: 10.26509/frbc-ec-202615

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