The structure of disadvantage: Individual and occupational determinants ofthe black-white wage gap

This study is, motivated by the idea that the racial gap in earnings is gen erated not only by individual differences but also by systematic variation in the occupational structure that attenuates or exacerbates the effects of race. Using data from the 1990 census and the Dictionary of Occupational T itles, a hierarchical linear modeling approach is employed that allows the simultaneous exploration of the mechanisms of income inequality operating b oth within and between occupations. Among private-sector employees, strikin g evidence shows that racial disparities increase in both absolute and perc entage terms as one moves up the occupational earnings hierarchy. The assoc iation between average occupational earnings and within-occupation racial d isadvantage reveals an overlooked source of racial earnings inequality whic h constrains the opportunities available to upwardly mobile black men in th e private sector This association cannot be explained by measured individua l characteristics, or by the status, demographic composition, or skill dema nds of occupations. In: the public sector on the other hand, racial inequal ity in earnings is not systematically associated with average occupational earnings, and is instead more closely tied to individual human capital and occupational placement. The implications of these results are considered an d directions for future research are suggested.