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The paper presents a new analysis examining gender and racial/ethnic differences in wage growth among workers in the United States who, between the ages of 18 and 34, entered occupations that require some training or experience beyond a high school degree, but do not necessarily require a college degree (referred to as “mid-level” occupations). The paper includes implications for policymakers and practitioners. The “mid-level” occupations that the analyses focus on are occupations that require an extent of prior preparation that is similar to that of occupations that career pathways programs focus on for training. Using data from 1997-2018, the study examines differences in wage growth for a 10-year period after individuals first enter one of those mid-level occupations. Because the analysis explores wage growth among workers assuming the same occupational starting point (that is, controlling for occupation and wage at entry), it provides important information specifically on the role of career advancement, rather than initial hiring, in contributing to overall wage disparities associated with gender and race/ethnicity.

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Research Questions

• Among workers who take jobs in mid-level occupations, how do gender and racial/ethnic disparities in wage growth evolve over the course of the 10 years after entering the occupation?
• In what ways do gender disparities in wage growth vary by race/ethnicity, and in what ways do racial/ethnic disparities in wage growth vary by gender?
• To what extent do gender and racial/ethnic wage growth disparities vary among occupational clusters?
• What gender and racial/ethnic gaps exist in other career-related outcomes, and to what extent can those gaps explain wage growth disparities?

Key Takeaways

• Disparities in wage growth (both by gender and by race/ethnicity) expand over time.
• When considering workers’ gender and race/ethnicity together, Black women, Hispanic women, White women, Black men, and Hispanic men all experience lower wage growth than do White men.
• Wage growth disparities appear to be widespread across occupational clusters. Generally, no clear association between wage disparities and the composition of the workforce in the occupational cluster was found, although a possible association for Black workers was detected.
• Disparities in other career-related outcomes appear to explain little of the gender and racial/ethnic disparities in wage growth.

Citation

Clarkwest, A., Kappil, T., Schwartz, D., Hashizume, M., Martinson, K. (2021). Abt Associates. Wage Growth Disparities by Gender and Race/Ethnicity Among Entrants to Mid-Level Occupations in the United States: Findings from the Career Trajectories and Occupational Transitions Study. Chief Evaluation Office, U.S. Department of Labor.

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The Department of Labor’s (DOL) Chief Evaluation Office (CEO) sponsors independent evaluations and research, primarily conducted by external, third-party contractors in accordance with the Department of Labor Evaluation Policy and CEO’s research development process.