Racial and gender pay disparities: The role of education

Michelle J. Budig, Misun Lim and Melissa J. Hodges

EconStor Open Access Articles and Book Chapters, 2021, vol. 98, -

Abstract: We investigate whether white women, black women, and black men earn less than white men because of 1) lower educational attainment and/or 2) lower wage returns to the same levels and academic fields of attainment. Using the 1979–2012 waves of the American National Longitudinal Survey of Youth (NLSY79), we examine how educational attainment and academic fields of study impact pay. Regression decompositions show that differences in attainment and in academic fields explain 13 to 23 percent of the racial pay gaps, but none of the gender pay gaps. Random effects models test for race and gender differences in the wage returns to education. Men of both races receive higher wage returns relative to women, while black women receive lower returns relative to all groups for master's degrees. Our intersectional approach reveals that equalizing educational attainment would reduce racial pay gaps, whereas equalizing wage returns to education would reduce gender pay disparities. Moreover, black women's earnings are multiply disadvantaged, both by their lower attainment relative to white women, and their lower returns to education relative to all groups studied.

Keywords: race; gender; education; earnings; inequality (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/256894/1/F ... acial-and-gender.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:espost:256894

Access Statistics for this article

More articles in EconStor Open Access Articles and Book Chapters from ZBW - Leibniz Information Centre for Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().