Fluctuating courses and constant challenges: The two trajectories of black-white earnings inequality, 1968–2015

Abstract

While rich literature exists on black-white earnings disparity, few studies differentiate the separate challenges facing different socioeconomic segments of the black population. Based on the Panel Study of Income Dynamics (PSID), this study explores the evolvement of black-white inequality in early-career earnings separately among college-educated and non-college-educated Americans from 1968 to 2015. The results indicate that while college-educated African Americans underwent fluctuating progress toward racial earnings equality, contingent on larger political and economic climates, African Americans of limited educational attainment experienced persistently wide earnings gaps with their white counterparts. By confirming the significance of social class on African-American economic outcomes, this study provides evidence in support of class-specific policy interventions toward racial equality. It also opens the door for subsequent research to explore specific mechanisms through which class-based racial disadvantages are operationalized.