Changes in Wage Gaps over Forty Years in the United States

This Economic Commentary explores the evolution of wage gaps between white and Black and white and Hispanic workers in the United States from 1980 to 2022. It analyzes wage gaps at various percentiles of the wage distribution and decomposes them to identify the factors driving changes over time. The findings reveal that while the gap between wages for white individuals and for others has narrowed for Black men at the 20th and 50th percentiles, it has expanded elsewhere, with the most significant widening occurring at the 80th percentile, particularly for Hispanic workers. Differences in educational attainment and occupations are the key factors that explain the observed wage gap trends.