The Great Equalizer: Does Education Pay off for Members of Historically Discriminated-Against Groups?

Jennifer Cheeseman Day, U.S. Census Bureau
Eric C. Newburger, U.S. Census Bureau

Despite rising educational attainment across social and demographic lines, income surveys show persistent disparities in earnings between men and women, and among members of different races or ethnicities. Yet the same research confirms the relationship between earnings and education. At least some earnings differences between members of different groups arise from residual differences in educational attainment by group members. However, do education differences fully explain earnings disparities? What might? In light of persistent differences in earnings among people from different social groups, does education really matter? We extend ongoing Census Bureau research to explore these questions. Using a demographic method, we demonstrate directly how similar educational attainment translates into different life-time accumulations of earnings for members of different social groups. Using regression, we attempt to reveal whether education or social group membership exerts more influence on earnings. We conclude by discussing the limitations of our models and suggest further research.