The Black–White wage gap among young men in 1990 versus 2011: With sample selection adjustments

Abstract

AbstractThis paper uses unconditional quantile regressions to decompose changes in the black–white wage gap for young men between 1990 and 2011. Introducing a new application of reweighting methods, we control for selection into employment which tends to widen the gap. We find no changes in the gap itself between 1990 and 2011, but reversals in the roles of ability and education across the distribution. Ability loses importance at the bottom and middle but gains importance at the top, while the opposite occurs for education. This results from heterogeneous changes in returns to ability and education across the distribution alongside a widening educational achievement gap.