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Labor market dynamics and black–white earnings gaps

Mary C. Daly, Bart Hobijn and Joseph H. Pedtke

Economics Letters, 2020, vol. 186, issue C

Abstract: Earnings gaps between black and white workers have widened over the past 30–40 years. This increase is not explained by differences in observed demographics or the industry and occupational composition of employment. We suggest that variation in labor market dynamics between black and white workers are important. Disparities in job switching, job loss, and associated wage growth result in flatter career wage profiles for black workers and widening earnings gaps over the work life.

Keywords: Earnings gaps; Labor market dynamics; Wage escalators (search for similar items in EconPapers)
JEL-codes: E24 J3 J6 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1016/j.econlet.2019.108807

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