Study Questions Role of Slavery in Explaining Racial Wealth Gap
6 reported
A new academic paper argues that the black-white wealth gap in the United States may not be primarily explained by the legacy of slavery, but rather by differences in income and savings. The paper, authored by Brian Marein, analyzes data on European immigrants who arrived during the Age of Mass Migration from 1850 to 1924. These immigrants began with substantial wealth deficits compared to native-born whites, yet by the late twentieth century their descendants had closed that gap. The study suggests that large wealth disparities do not mechanically persist when groups have access to comparable economic opportunities. This finding challenges a separate argument, published in the Quarterly Journal of Economics by Derenoncourt, Kim, Kuhn, and Schularick, which attributes today’s wealth gap to initial conditions from over 150 years ago, including slavery. The article notes that millions of white immigrants arrived with no wealth and eventually surpassed “heritage” whites in wealth. The analysis concludes that income differences are the most likely explanation for the persistent racial wealth gap.
What’s reported
Brian Marein’s paper analyzes wealth dynamics among European immigrants and their descendants.
Immigrants from 1850 to 1924 began with substantial wealth deficits relative to native-born whites.
By the late twentieth century, those deficits had closed, with descendants of later-arriving Southern and Eastern Europeans catching up to those of longer-established Northwestern Europeans.
The paper states that large wealth disparities do not mechanically persist when groups have comparable economic opportunities.
A separate paper by Derenoncourt, Kim, Kuhn, and Schularick in the QJE argues the black-white wealth gap is explained by initial conditions from over 150 years ago, i.e., slavery.
The article notes that millions of white immigrants arrived with no wealth and today are richer than heritage whites.
Key figures
Brian Marein, author of the paper discussed
Derenoncourt, Kim, Kuhn, and Schularick, authors of the QJE paper
Sources: marginalrevolution.com
