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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.

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.