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The Enduring Effects of Racial Discrimination on Income and Health

Author

Listed:
  • Shari J. Eli
  • Trevon D. Logan
  • Boriana Miloucheva

Abstract

We investigate the effect of income on the long-standing racial mortality gap in the United States by using evidence from White and Black Civil War veterans who went on to receive postwar pensions. To circumvent endogeneity, we propose an exogenous source of variation in pension income: the judgment of the doctors who certified disability. We find large effects of pension income on longevity; large enough to close the Black–White mortality gap, in principle. However, because physicians discriminated against Blacks when evaluating the existence and severity of disabilities, Blacks received reduced pension benefits that failed to eliminate racial mortality gaps in practice. Our findings shed light on the role of beliefs about race, as opposed to racial animus, in contributing to racial differentials in well-being.

Suggested Citation

  • Shari J. Eli & Trevon D. Logan & Boriana Miloucheva, 2023. "The Enduring Effects of Racial Discrimination on Income and Health," Journal of Economic Literature, American Economic Association, vol. 61(3), pages 924-940, September.
    • Handle: RePEc:aea:jeclit:v:61:y:2023:i:3:p:924-40
    DOI: 10.1257/jel.20221706
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    More about this item

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • N31 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: Pre-1913

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