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Race and Earnings Mobility in the US

Author

Listed:
  • John A. Bishop

    (East Carolina University)

  • Juan Gabriel Rodríguez

    (Universidad Complutense de Madrid)

  • Lester A. Zeager

    (East Carolina University)

Abstract

We investigate the racial differences in positional and directional earning mobility for blacks and whites using seven 6-year longitudinal samples drawn from the Panel Study of Income Dynamics, extending from 1973 through 2015. Positional mobility comparisons are mixed for the proportion of each sample moving to a higher earnings category but reveal a higher percentage of blacks than whites trapped in the bottom 25% of the distribution of earnings. Directional mobility comparisons show that the mean increase from the initial to final earnings distribution was significantly greater for whites than for blacks throughout 1973–85 and 1997–2009. A breakdown of these findings by gender reveals that they arise primarily from the labor market experience of black men, who face more severe racial disparities in positional and directional earning mobility than black women. Overall, these findings on intragenerational earning mobility are in line with recent research on intergenerational mobility in the US.

Suggested Citation

  • John A. Bishop & Juan Gabriel Rodríguez & Lester A. Zeager, 2021. "Race and Earnings Mobility in the US," Journal of Economics, Race, and Policy, Springer, vol. 4(3), pages 166-182, September.
    • Handle: RePEc:spr:joerap:v:4:y:2021:i:3:d:10.1007_s41996-021-00082-5
    DOI: 10.1007/s41996-021-00082-5
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    References listed on IDEAS

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    1. Burkhauser, Richard V & Holtz-Eakin, Douglas & Rhody, Stephen E, 1997. "Labor Earnings Mobility and Inequality in the United States and Germany during the Growth Years of the 1980s," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(4), pages 775-794, November.
    2. Claudia Vittori & Paul Gregg, 2017. "Global And Disaggregated Measures Of Earnings Mobility: Evidence From Five European Countries," Bulletin of Economic Research, Wiley Blackwell, vol. 69(4), pages 395-420, October.
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    4. Barry T. Hirsch & John V. Winters, 2014. "An Anatomy Of Racial and Ethnic Trends in Male Earnings in the U.S," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 930-947, December.
    5. Antoni Calvó-Armengol & Matthew O. Jackson, 2004. "The Effects of Social Networks on Employment and Inequality," American Economic Review, American Economic Association, vol. 94(3), pages 426-454, June.
    6. Fryer Jr., Roland G., 2011. "Racial Inequality in the 21st Century: The Declining Significance of Discrimination," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 10, pages 855-971, Elsevier.
    7. Bidisha Lahiri, 2018. "Racial Earnings Disparities with Endogenous Labor Market Participation," Journal of Economics, Race, and Policy, Springer, vol. 1(1), pages 16-25, July.
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    Cited by:

    1. Marrero,Gustavo Alberto & Rodríguez,Juan Gabriel & Van Der Weide,Roy, 2021. "Does Race and Gender Inequality Impact Income Growth ?," Policy Research Working Paper Series 9865, The World Bank.
    2. Debra L. Brucker & Megan Henly & Andrew Houtenville, 2022. "Investigating Racial and Ethnic Disparities in the Provision of Workplace Accommodations in the U.S," Working Papers wp442, University of Michigan, Michigan Retirement Research Center.

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