Chart Detail

Contribution of within-group and between-group inequality to total wage inequality, 1973–2011

Women Men
Overall wage inequality* Between-group inequality** Within-group inequality*** Contribution of within-group inequality Overall wage inequality* Between-group inequality** Within-group inequality*** Contribution of within-group inequality
(1) (2) (3) (3)/(1) (1) (2) (3) (3)/(1)
1973 0.478 0.061 0.418 87.3% 0.506 0.083 0.423 83.6%
1979 0.446 0.044 0.402 90.1 0.506 0.078 0.428 84.7
1989 0.529 0.082 0.447 84.5 0.579 0.112 0.467 80.7
1995 0.562 0.095 0.467 83.1 0.595 0.118 0.478 80.2
2000 0.552 0.094 0.458 82.9 0.595 0.114 0.481 80.8
2007 0.586 0.102 0.484 82.7 0.620 0.119 0.501 80.8
2011 0.593 0.108 0.485 81.8 0.635 0.128 0.507 79.9
Change, subperiods
1979–1995 0.116 0.051 0.065 56.1% 0.089 0.040 0.049 55.2%
1995–2000 -0.009 -0.001 -0.009 91.8 0.000 -0.003 0.003 ****
2000–2007 0.033 0.007 0.026 78.0 0.025 0.005 0.020 80.9
2007–2011 0.008 0.006 0.001 14.8 0.014 0.009 0.005 37.7
Change, longer-term
1979–2007 0.140 0.057 0.082 58.9 0.114 0.041 0.073 63.8
1979–2011 0.147 0.064 0.084 56.7 0.129 0.050 0.078 60.9

* Measured as standard deviation of log wages

** Reflects changes in education, experience, race/ethnicity, marital status, and regional differentials

*** Measured as mean square error from a standard (log) wage regression

**** Not applicable because denominator is zero

Source: Authors' analysis of Current Population Survey Outgoing Rotation Group microdata

Updated May 14, 2012

Documentation and methodology

Data are from the CPS-ORG sample described in Appendix B. “Overall wage inequality” is measured as the standard deviation of log wages. “Within-group wage inequality” is the mean square error from log wage regressions (the same ones used for Table 4.13). “Between-group wage inequality” is the difference between the overall and within-group wage inequalities and reflects changes in all of the included variables: education, age, marital status, race, ethnicity, and region.

Get the data

Get the data behind the charts.

Explore Our Charts

Subject

Demographic

Select a subject or demographic

Interactive feature

Interactive feature promo image When income grows, who gains?

For the media

Economic Policy Institute Media Relations Department (202) 775–8810 |