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On the Persistence of Racial Inequality

  • Lundberg, Shelly
  • Startz, Richard

A model of the 'new growth theory' type is applied to the persistence of racial income differentials in the presence of community segregation. When community human capital affects human capital accumulation by individuals, differences between groups can persist indefinitely, even in the absence of current discrimination. Intercommunity mobility can benefit advantaged minority workers who leave behind an impoverished ghetto. Workplace integration without community integration may not lead to equality even in the long run. The authors examine various policies and show that a large, temporary intervention may be successful in achieving racial equality while a smaller permanent one fails. Copyright 1998 by University of Chicago Press.

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File URL: http://dx.doi.org/10.1086/209890
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Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 16 (1998)
Issue (Month): 2 (April)
Pages: 292-323

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Handle: RePEc:ucp:jlabec:v:16:y:1998:i:2:p:292-323
Contact details of provider: Web page: http://www.journals.uchicago.edu/JOLE/

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  1. Paul M Romer, 1999. "Endogenous Technological Change," Levine's Working Paper Archive 2135, David K. Levine.
  2. Larry E. Jones & Rodolfo Manuelli, 1990. "A Convex Model of Equilibrium Growth," NBER Working Papers 3241, National Bureau of Economic Research, Inc.
  3. Christopher J. Ruhm, 1988. "When 'Equal Opportunity' is not Enough: Training Costs and Intergenerational Inequality," Journal of Human Resources, University of Wisconsin Press, vol. 23(2), pages 155-172.
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  5. Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 818-34, August.
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  9. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  10. Smith, James P, 1993. "Affirmative Action and the Racial Wage Gap," American Economic Review, American Economic Association, vol. 83(2), pages 79-84, May.
  11. David Card & Alan B. Krueger, 1991. "School Quality and Black-White Relative Earnings: A Direct Assessment," NBER Working Papers 3713, National Bureau of Economic Research, Inc.
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