Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/215346 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 12950
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper is an application of a new Shapley income decomposition methodology, in which we isolate two subjective factors in income differences - race and gender - that contribute to income inequality within the population of blacks and whites in the United States over the period 2005-2017. We show that the purely racial contribution to income inequality as defined by the Gini index varies from 1% to 4% depending on the geographical administrative divisions used. Race tends to contribute more to inequality in the Western and Southern part of the country. Whatever the division, the share of income inequality associated with gender exceeds greatly that of race. While gender income inequality falls over time, income inequality associated with race tends to increase.
Subjects: 
income inequality
decomposition
Shapley value
racial discrimination
gender discrimination
JEL: 
C71
D63
J15
J71
Document Type: 
Working Paper

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