BEE2045 - 2025 - Lecture 14 - Race - Part 2

Racial Discrimination and Inequalities - Part 2

Political Inequality

• Political power is crucial for marginalized groups to effectively influence institutions and access public goods.

• Consequences of political inequality include:

  • Civil liberties e - Health disparities

Civil Liberties

• Civil liberties refer to rights and freedoms guaranteed by a government’s constitution and legal system.

• Racial disparities in the criminal justice system include:

  • Higher likelihood of arrests for Black individuals compared to White individuals.

  • Increased charges and heavier sentences for Black individuals.

  • Higher rates of pretrial detention and wrongful convictions.

  • Longer sentences and higher chances of facing death penalty.

  • Higher risk of being re-arrested for parole violations.

Incarceration Rates

• Peak incarceration in 2008: 2.3 million people, with 40% Black men.

• Incarceration in 2020: Almost 2% of Black men.

Impact of Incarceration

• Total earnings depression due to incarceration:

  • White males: -2%

  • Hispanic males: -6%

  • Black males: -9%

• Children of incarcerated fathers are more likely to face expulsion or suspension in schools.

• Incarceration affects family decisions for Black women.

• Black communities experience paradoxical policing: over-policed and under-investigated.

• Homicides involving Black victims often remain unresolved.

Rule of Law and Wealth

• Without a strong rule of law, wealth owned by Black individuals has been vulnerable to unlawful seizure.

• Historical violence against wealth accumulation for Black individuals has created lingering economic consequences.

• Wealth disparities cannot be fully attributed to saving rates; systemic inequalities lead to a prolonged wealth gap.

Health Gaps

• 19th and 20th-century segregation of Black hospitals led to long-standing healthcare inequalities.

• Life expectancy racial gaps persist despite shrinking over time.

Infant Mortality

• Early 20th century: Gaps in life expectancy were driven by infant mortality.

• Late 20th century: Chronic diseases in older ages have increased gaps due to environmental conditions and racism.

Political Power Reduction Measures

• U.S. political system contributing to diminished political power for Black citizens via:

  • Racial gerrymandering.

  • Lack of voting time off and limited early voting.

  • Felony disenfranchisement.

  • Influence of money in politics.

Intergenerational Inequality

• Racial identity transmission results in sustained intergenerational inequality.

• Intergenerational mobility measured as intergenerational correlation (IGC); U.S. IGC is 0.37 (high).

• Mobility trends differ by race:

  • Higher mobility among Asians and Asian Americans linked to education levels.

  • White: Children of 50th percentile rated slightly higher (53rd).

  • Black: 50th percentile parents’ children likely in the 39th percentile (downward mobility).

Modeling Intergenerational Inequality

• Factors influencing persistent racial income gaps:

  • Discrimination, segregation, and political inequality over generations.

• White vs. Black family examples:

  • Louis (Black sharecropper) and Moe (White manager), showcasing income transitions.

Key Takeaways

• Historical differences between races can have lasting impacts.

• Positive changes for Black households can be eroded by systemic disadvantages.

• Negative impacts for White households can often be mitigated by privileges.

Main Message

• Racial inequality decreased significantly in the early 20th century.

• Greater Black access to education and job opportunities narrowed income gaps but progress has stalled since the 1980s.

Vicious Cycle

• Government policies and racism contribute to segregation, which further fuels discrimination.

• The relationship between political inequality and discrimination reinforces this cycle.

Policies Addressing Racial Inequality

Universal Policies

• Universal healthcare and childcare.

• Equitable educational funding.

• Enhanced voting rights.

• Policies addressing wealth inequality.

Targeted Policies

• Housing and school desegregation.

• Anti-discrimination strategies.

• Reparations proposals.

Racial Discrimination Theory

• Different theories explain wage and employment differentials but do not fully clarify existing disparities.

• Models of statistical discrimination and taste discrimination yield insights but lack comprehensive explanatory power.

Summary of Findings

• Racial labor market