Racial inequality in the U.S. is typically described in terms of categorical discrimination. We use released data from the U.S. from 1973- 2019 to show income inequality by perceived skin color and racial self-identification and examine which measure better captures racial disparities. We document color and racial hierarchies across the Americas, revealing some unexpected patterns. Whereas blacks at times have higher mean incomes than other racial populations. Results complicate theoretical debates about U.S. racial exceptionalism and methodological debates about how best to measure income. Rather than supporting one measure over another, our analysis underscores race’s multidimensionality.
We employ a fixed effects regression model to uncover structural change in the Kuznets curves for the U.S. aggregate, Black, White, Asian, and Hispanic American segments of the population. Unlike to prior studies, we find that the Kuznets curves does not switch to a U-shape. We found conclusive evidence linking income inequality to race.
JEL Codes: C13, C30, E25, O51