Document Type
Preprint
Publication Date
12-1-2022
Journal / Book Title
Empirical Economics
Abstract
This paper aims to clarify the relationship between monetary policy shocks and wage inequality. We emphasize the relevance of within- and between-wage-group inequalities in explaining total wage inequality in the USA. Relying on the quarterly data for the period 2000–2020, our analysis shows that racial disparities explain 12% of observed total wage inequality. Subsequently, we examine the role of monetary policy in wage inequality. We do not find compelling evidence that shows that monetary policy plays a role in exacerbating the racial wage gap. However, there is evidence that accommodative monetary policy plays a role in magnifying between-group wage inequalities but the impact occurs after 2008.
DOI
10.1007/s00181-022-02233-5
MSU Digital Commons Citation
Berisha, Edmond; Dubey, Ram Sewak; and Olson, Eric, "Monetary policy and the racial wage gap" (2022). Department of Economics Faculty Scholarship and Creative Works. 96.
https://digitalcommons.montclair.edu/economics-facpubs/96
Published Citation
Berisha, Edmond and Dubey, Ram Sewak and Olson, Eric and Olson, Eric, Monetary Policy and the Racial Wage Gap (March 7, 2022). Available at SSRN: https://ssrn.com/abstract=4317170 or http://dx.doi.org/10.2139/ssrn.4317170