Final answer:
The earnings gap exists along racial and gender lines, influenced by education disparity and systemic discrimination, which impacts hiring practices and the progression of wages over time.
Step-by-step explanation:
The earnings gap between various demographic groups in the United States has been a persistent issue. Racial wage gap and gender wage gap are two of the most discussed disparities. Although educational attainment is a factor in these gaps, with white individuals typically having higher completion rates for four-year college degrees compared to black individuals, there are indications that discrimination also plays a significant role. Studies have shown that black and white workers with the same education and experience levels start with similar salaries, but the earnings gap widens over time, suggesting ongoing discrimination. Additionally, job application experiments revealing that resumes with white-sounding names receive more callbacks hint at bias in hiring practices. The interconnection between discrimination in housing and employment has also been highlighted as a factor contributing to the persistent wage gaps.