Inequality and Race: Models and Policy

35 Pages Posted: 10 May 1999

See all articles by Shelly J. Lundberg

Shelly J. Lundberg

University of California, Santa Barbara (UCSB); IZA Institute of Labor Economics; University of Bergen - Department of Economics

Richard Startz

UCSB

Date Written: June 1998

Abstract

Race and ethnicity play a central role in understanding the structure of inequality in the United States. In this paper, we focus on the economic chasm between black and white America and on what economic theory can contribute to our understanding of both inequality and the design of effective policy. We review recent models of labor market discrimination and the intergenerational transmission of inequality. Our main conclusions are: 1) Modern theories of statistical discrimination and of human capital investment in a social context provide support for activist government policies to combat racial inequality; and 2) Not all policies that appear to be equity-enhancing will in fact have positive effects.

JEL Classification: J71

Suggested Citation

Lundberg, Shelly J. and Startz, Richard, Inequality and Race: Models and Policy (June 1998). Available at SSRN: https://ssrn.com/abstract=148335 or http://dx.doi.org/10.2139/ssrn.148335

Shelly J. Lundberg

University of California, Santa Barbara (UCSB) ( email )

South Hall 5504
Santa Barbara, CA 93106
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

University of Bergen - Department of Economics ( email )

Fosswinckelsgt. 6
N-5007 Bergen, 5007
Norway

Richard Startz (Contact Author)

UCSB ( email )

Department of Economics
University of California
Santa Barbara, CA 93106-9210
United States
805-893-2895 (Phone)

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