Article: Explaining levels of within-group wage inequality in U.S. labor markets

EXPLAINING LEVELS OF WITHIN-GROUP WAGE INEQUALITY IN U.S. LABOR MARKETS*

Most research on earnings inequality has focused on the growing gap between workers of different races and at different education, age, and income levels, but a large portion of the increasing inequality has actually occurred within these groups. This article focuses on the extent and sources of "within-group" wage inequality in more than 500 labor markets in the United States in 1990. In addition to documenting that within-group wage inequality across regions varies more widely today than over the past several decades, the analysis reveals that two frequently cited explanations of rising wage inequality over time ...

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