Final answer:
The wage gap refers to the earnings disparity between different groups, notably by gender and race. It has been somewhat reduced over time, with a gender wage gap of about 5% when adjusted for factors like education and occupation. However, both gender and racial pay gaps persist.
Step-by-step explanation:
When wages are adjusted for relevant factors such as educational achievement, work experience, and occupation, the wage gap is the observed disparity in earnings between different groups of workers, primarily analyzed by gender and race. According to the U.S. Department of Labor, when such adjustments are made, the gender wage gap is around 5%. This shows that laws against discrimination have had some impact on reducing wage inequalities. Research highlighting these issues includes the work of economists Francine Blau and Laurence Kahn who noted a decline in the gap between men's and women's earnings since the 1980s, although a persistent gap remains. Regarding racial earnings disparities, figures indicate the wage of black workers in relation to white workers has seen some reduction in the 1970s, but the gap has remained largely the same for the last 50 years.