Labor Force Attachment and the Evolving Wage Gap Between White, Black, and Hispanic Young Women

Abstract

In this article, the authors examine the role of labor force attachment (LFA) in shaping the diverging wage trajectories of White, Black, and Hispanic women during their first postschooling decade. The authors take advantage of the longitudinal aspects of the National Longitudinal Survey of Youth work history data by constructing detailed annual and cumulative measures of LFA and use them to examine women's wage profiles. The findings show constant racial and ethnic wage gaps among women with college education and a widening race gap among women with no college degree. The latter pattern emphasizes the importance of market-related processes in generating wage inequality among unskilled women. The authors document substantial racial and ethnic gaps within this group in the accumulation of LFA, especially immediately after the transition from school to work. This deficit in labor market experience plays a critical role in creating the diverse wage trajectories of White, Black, and Hispanic women with no college education.