Wage inequality: The role of education

Edmond Berisha (), Ram Dubey (), Orkideh Gharehgozli () and Zaman Zamanian ()
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Edmond Berisha: Feliciano School of Business, Montclair State University
Orkideh Gharehgozli: Montclair State University
Zaman Zamanian: Montclair State University

Economics Bulletin, 2025, vol. 45, issue 1, 606 - 616

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.

Keywords: Decomposition; Education; Theil Index; Inequality (search for similar items in EconPapers)
JEL-codes: A2 D3 (search for similar items in EconPapers)
Date: 2025-03-30
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