  This paper aims to clarify the relationship between monetary policy shocks
and wage inequality. We emphasize the relevance of within and between wage
group inequalities in explaining total wage inequality in the United States.
Relying on the quarterly data for the period 2000-2020, our analysis shows that
racial disparities explain 12\% of observed total wage inequality.
Subsequently, we examine the role of monetary policy in wage inequality. We do
not find compelling evidence that shows that monetary policy plays a role in
exacerbating the racial wage gap. However, there is evidence that accommodative
monetary policy plays a role in magnifying between group wage inequalities but
the impact occurs after 2008.
