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Lifetime Earnings Differences across Black and White Individuals: Years Worked Matter

Author

Listed:
  • Andrew Glover
  • Jose Mustre-del-Rio
  • Emily Pollard

Abstract

In this article, Andrew Glover, José Mustre-del-Río, and Emily Pollard go beyond point-in-time measures of earnings and examine lifetime earnings differences between Black and white individuals. They find that, on average, Black individuals earn about one-third less than white individuals over the course of their lifetimes (a difference equivalent to about $550,000), though the size of this gap varies by sex and education level. In addition, they find that differences in years worked, which are not captured by point-in-time measures, contribute substantially to earnings differences between Black and white individuals.

Suggested Citation

  • Andrew Glover & Jose Mustre-del-Rio & Emily Pollard, 2022. "Lifetime Earnings Differences across Black and White Individuals: Years Worked Matter," Economic Review, Federal Reserve Bank of Kansas City, vol. 108(no.1), December.
    • Handle: RePEc:fip:fedker:95389
    DOI: 10.18651/ER/v108n1GloverMustredelRioPollard
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    References listed on IDEAS

    as
    1. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-442, June.
    2. Marianne Bertrand & Sendhil Mullainathan, 2004. "Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination," American Economic Review, American Economic Association, vol. 94(4), pages 991-1013, September.
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    More about this item

    Keywords

    labor market; wages;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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