Meritocracy Not Racial Discrimination Explains the Racial Income Gap: An Analysis of NLSY 1979

Kirkegaard, Emil O W. 2017. “Meritocracy Not Racial Discrimination Explains the Racial Income Gap: An Analysis of NLSY 1979”. PsyArXiv. September 5. https://psyarxiv.com/qty3n

Abstract: Socially defined racial groups usually differ in average incomes, though the causes of this are contested. Here the NLSY1979 (National Longitudinal Survey of Youth, n > 11k) was analyzed to examine the relative importance of cognitive ability, market-irrelevant racial discrimination and cultural self-identification for predicting long term income (average of 25 years). The use of both self- and other-perceived racial group plausibly allows one to distinguish between effects related to how others perceive one’s racial group vs. how individuals perceive themselves. Results indicated that other-perceived Black and Hispanic racial status was associated with either no difference or slightly higher incomes when cognitive ability was controlled for (betas 0.15 and 0.11, respectively), whereas self-perceived Black status was negatively negatively to income (beta = -0.24). Other self-perceived racial statuses has no clearly detectable effect.

Results were interpreted as being mainly congruent with meritocracy and inconsistent with market-irrelevant racial discrimination models.