Does a Rising Tide Lift All Ships? Comparisons between China and the USA
14 Pages Posted: 13 Mar 2012
Date Written: October 13, 2011
This paper sketches the broad experience of black-white earnings disparities in the United States over the course of the business cycle, comparing them to disparities between urban minorities and Han in China. The patterns differ between the USA and China, warranting a more detailed look at the dynamics of racial earnings inequality in the USA. We present a model of earnings disparities and estimate the impacts of fluctuations in state unemployment on black-white earnings gaps. Our findings are not consistent with the view that “a rising tide lifts all ships” as it relates to racial/ethnic inequality in the USA.
Keywords: earnings, disparities, race, inequality, unemployment
JEL Classification: J15
Suggested Citation: Suggested Citation