This analysis examines the widening wage gap in black and white individuals, suggesting differences in skill impacts.
In this paper I study how the wage gap between black and white high school graduates evolves over the life-cycle using NLSY79 data. I document three main results. First, the black-white gap in median wages grows over the life-cycle. Second, individuals with higher levels of cognitive skills see their wages grow faster. Third, after equalizing the levels of cognitive, non-cognitive and social skills upon entering the labor market, the black-white gap in median wages continues to widen, but at a slower pace.
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Maksym Kutsenko (2024) studied this question.
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