Decomposition of U.S. Urban-Rural Racial Wage Gaps

Evan Carr, Dr. Lisa Wilder, Department of Economics, Albright College, 1621 N 13th St, Reading, PA 19604

In an increasingly polarized and unequal U.S. economy, one of the primary determinants of economic performance is race.  In 2019, the median household income for black families was $46,073 compared to $76,057 for whites (Wilson, 2020).  Reasons indicated for the race wage gap include differences in education, occupation, and discrimination (people with the same characteristics being paid differently).  Our study pays attention to where one lives, specifically, urban compared to rural areas.  Through the Oaxaca-Blinder decomposition, the wage gap observed between two groups can be decomposed into an explained proportion based to worker characteristics and an unexplained portion resulting from the returns to productive factors.  This study will examine the Oaxaca-Blinder decomposition of the wage difference between black and non-hispanic white workers in 2019 based on urbanization.

Additional Abstract Information

Presenter: Evan Carr

Institution: Albright College

Type: Oral

Subject: Economics

Status: Approved

Time and Location

Session: Oral 9
Date/Time: Wed 12:00pm-1:00pm
Session Number: 916
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