Relative changes in gender and race-based earnings costs, 1970-1995

Abstract

The major purpose of this paper is to determine absolute and relative changes in gender and race based, inflation-adjusted earnings costs over the period 1970–1995. Yearly estimated earnings comparisons of white males with white females, African-American males and females suggest that total earnings gaps have narrowed considerably. For African-American males, remaining costs are mostly associated with labour market and other measurable differences. For white and African-American females, however, the unexplained, possibly discriminatory portion of the earnings gap has increased in absolute (as compared to white males) and relative terms (as compared to African-American males).