MALE SUB-METROPOLITAN BLACK-WHITE WAGE GAPS - NEW EVIDENCE FOR THE 1980S

This study analyses trends in US male black-white earnings gaps by sub -metropolitan residence, Large suburban earnings gaps existed in 1979; however, central city gaps exhibited the largest increases during the 1980s. The increases are decomposed into changes in measurable charac teristics, changes in the prices of measurable characteristics, change s in discrimination and/or unobservable skills, and changes in white e arnings inequality. Changes in measured characteristics and their pric es, and changes in inequality account for little of the increases in c entral city gaps, Either labour market discrimination worsened or raci al differences in unobservable skills widened, A review of the literat ure suggests that this paper's evidence is more consistent with a wors ening in discrimination.