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The Impact of Market Factors on Racial Identity: Evidence from Multiracial Survey Respondents

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  • Osborne Jackson

Abstract

This paper examines the reported race of multiracial persons in the US Current Population Survey (CPS) before 2003, when limited response options exogenously constrained respondents to identify as a single race. Using this survey attribute and the 16-month longitudinal design of the basic monthly CPS, I explore whether market factors help causally determine racial identity. I find that pre-2003 race responds to state-level (1) racial composition, due largely to household composition, and (2) unemployment rates and wages by race. Although these findings suggest potential endogeneity of race, estimation of how race affects individual-level labor market outcomes indicates minimal bias.

Suggested Citation

  • Osborne Jackson, 2024. "The Impact of Market Factors on Racial Identity: Evidence from Multiracial Survey Respondents," Working Papers 24-13, Federal Reserve Bank of Boston.
    • Handle: RePEc:fip:fedbwp:99066
    DOI: 10.29412/res.wp.2024.13
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    References listed on IDEAS

    as
    1. George A. Akerlof & Rachel E. Kranton, 2002. "Identity and Schooling: Some Lessons for the Economics of Education," Journal of Economic Literature, American Economic Association, vol. 40(4), pages 1167-1201, December.
    2. George A. Akerlof & Rachel E. Kranton, 2005. "Identity and the Economics of Organizations," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 9-32, Winter.
    3. Carolyn A. Liebler & Sonya R. Porter & Leticia E. Fernandez & James M. Noon & Sharon R. Ennis, 2017. "America’s Churning Races: Race and Ethnicity Response Changes Between Census 2000 and the 2010 Census," Demography, Springer;Population Association of America (PAA), vol. 54(1), pages 259-284, February.
    4. Rivera Drew, Julia A. & Flood, Sarah & Warren, John Robert, 2014. "Making full use of the longitudinal design of the Current Population Survey: Methods for linking records across 16 months\m{1}," Journal of Economic and Social Measurement, IOS Press, issue 3, pages 121-144.
    5. Rademakers, Robbert & van Hoorn, André, 2021. "Ethnic switching: Longitudinal evidence on prevalence, correlates, and implications for measuring ethnic segregation," Journal of Development Economics, Elsevier, vol. 152(C).
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    More about this item

    Keywords

    racial identity; multiracial; biases; Current Population Survey (CPS);
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General

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