Working Paper
Accounting for Earnings Inequality in a Diverse Work Force
A general decomposition of earnings inequality is applied to the complete full-time labor force, including minorities and women. The results confirm that education premiums were the largest observable factor in the rise in earnings inequality in the 1980s, and also reveal an offsetting reduction in the role of race- and sex-related earnings differences.
Working Papers of the Federal Reserve Bank of Cleveland are preliminary materials circulated to stimulate discussion and critical comment on research in progress. They may not have been subject to the formal editorial review accorded official Federal Reserve Bank of Cleveland publications. The views expressed in this paper are those of the authors and do not represent the views of the Federal Reserve Bank of Cleveland or the Federal Reserve System.
Suggested Citation
Schweitzer, Mark E. 1993. “Accounting for Earnings Inequality in a Diverse Work Force.” Federal Reserve Bank of Cleveland, Working Paper No. 93-14. https://doi.org/10.26509/frbc-wp-199314
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