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Not All Education Is Created Equal: How Choice of Academic Major Affects the Racial Salary Gap

Using 48,403 observations from the National Survey of College Graduates, this article examines the racial salary disparity between Black and White college graduates. We find that academic major and first higher education institution influence one’s final occupation, which in turn affects the salary disparity between Blacks and Whites. We suggest that public policy builds awareness among high school students aspiring for college of the importance of preparing for specific academic majors that lead to occupations expected to maintain an earnings premium.