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Decomposition of income inequality by attributes: does the race matter in the US?
Using the Shapley income decomposition methodology, we isolate the pure racial contribution to income inequality in regards with the population of Blacks and Whites in the United-States over the period 2009-2014. Such a contribution can be seen as the direct perceived racial discrimination on earnings. We show that the pure racial contribution to income inequality is somewhat low, with about 1% to 4% depending on the US administrative divisions. The race tends to contribute more to total observed inequality in the West and South part of the US.
