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Differences in wealth, evidence from structural regression decomposition, 1850-1870

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  • James E. CURTIS Jr.

    () (Independent researcher, PO Box 3126, Washington, District of Columbia, USA.)

Abstract

Recent studies have used regression decomposition to analyze recent data and found that over seventy percent of the black-white wealth differences remained unexplained (See, e.g., Gittleman & Wolff 2000; Altonji, Doraszelski & Segal 2000; and Blau & Graham 1990). Their results are limited to the variation in modern data. This study contributes improved methodology and historical empirical results to the literature on economic discrimination. In this paper, (i) presents structural regression decompositions, which are modifications to methods developed by Becker (1957) and Oaxaca (1973); (ii) presents a basic empirical test when analyzing structural regression decompositions; (iii) reports the estimated sources of black-white differences in wealth directly before and after emancipation; (iv) links these findings to recent studies. Empirical estimates confirm that the size and persistence of modern black-white wealth differences have historical roots. (v) presents decision-making considerations of “individuals” in an economy with grouped individuals, owners of firms, and social planner(s), conditional on wealth constraints with applied social economic considerations.

Suggested Citation

  • James E. CURTIS Jr., 2018. "Differences in wealth, evidence from structural regression decomposition, 1850-1870," Journal of Economic and Social Thought, KSP Journals, vol. 5(1), pages 42-55, March.
  • Handle: RePEc:ksp:journ3:v:5:y:2018:i:1:p:42-55
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    References listed on IDEAS

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    Cited by:

    1. James CURTIS Jr, 2018. "A study of consumption decisions and wealth, individual data, political economy and theory," Journal of Economics Library, KSP Journals, vol. 5(1), pages 99-102, March.
    2. Curtis Jr, James, 2017. "Essays in Applied Labor Economics," MPRA Paper 84445, University Library of Munich, Germany.

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    More about this item

    Keywords

    Theory of economic discrimination; Structural regression decomposition; Wealth inequality.;
    All these keywords.

    JEL classification:

    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • N30 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - General, International, or Comparative

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