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Early Life Environment and Racial Inequality in Education and Earnings in the United States

Author

Listed:
  • Kenneth Y. Chay
  • Jonathan Guryan
  • Bhashkar Mazumder
Abstract
Chay, Guryan and Mazumder (2009) found substantial racial convergence in AFQT and NAEP scores across cohorts born in the 1960's and early 1970's that was concentrated among blacks in the South. We demonstrated a close tracking between variation in the test score convergence across states and racial convergence in measures of health and hospital access in the years immediately after birth. This study analyzes whether the across-cohort patterns in the black-white education and earnings gaps match those in early life health and test scores already established. It also addresses caveats in the earlier study, such as unobserved selection into taking the AFQT and potential discrepancies between state-of-birth and state-of-test taking. With Census data, we find: i) a significant narrowing across the same cohorts in education gaps driven primarily by a relative increase in the probability of blacks going to college; and ii) a similar convergence in relative earnings that is insensitive to adjustments for employment selection, as well as time and age effects that vary by race and state-of-residence. The variation in racial convergence across birth states matches the patterns in the earlier study. The magnitude of the earnings gains is greater than can be explained by only the black gains in education and test scores for reasonable estimates of the returns to human capital. This suggests that other pre-market, productivity factors also improved across successive cohorts of blacks born in the South between the early 1960's and early 1970's. Finally, our cohort-based hypothesis provides a cohesive explanation for the aggregate patterns in several, previously disconnected literatures.

Suggested Citation

  • Kenneth Y. Chay & Jonathan Guryan & Bhashkar Mazumder, 2014. "Early Life Environment and Racial Inequality in Education and Earnings in the United States," NBER Working Papers 20539, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:20539
    Note: CH EH LS
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    References listed on IDEAS

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    9. Kenneth Y. Chay & Jonathan Guryan & Bhashkar Mazumder, 2009. "Birth Cohort and the Black-White Achievement Gap: The Roles of Access and Health Soon After Birth," NBER Working Papers 15078, National Bureau of Economic Research, Inc.
    10. Neal, Derek A & Johnson, William R, 1996. "The Role of Premarket Factors in Black-White Wage Differences," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 869-895, October.
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    2. Goel, Deepti & Barooah, Bidisha, 2018. "Drivers of Student Performance: Evidence from Higher Secondary Public Schools in Delhi," GLO Discussion Paper Series 231, Global Labor Organization (GLO).
    3. Araújo, Daniel & Carrillo, Bladimir & Sampaio, Breno, 2021. "The Long-Run Economic Consequences of Iodine Supplementation," Journal of Health Economics, Elsevier, vol. 79(C).
    4. Catherine J. Weinberger, 2017. "Engineering Educational Opportunity: Impacts of 1970s and 1980s Policies to Increase the Share of Black College Graduates with Major in Engineering or Computer Science," NBER Working Papers 23703, National Bureau of Economic Research, Inc.
    5. William J. Collins & Michael Q. Moody, 2017. "Racial Differences in American Women's Labor Market Outcomes: A Long-Run View," NBER Working Papers 23397, National Bureau of Economic Research, Inc.
    6. Siwei Cheng & Christopher R. Tamborini & ChangHwan Kim & Arthur Sakamoto, 2019. "Educational Variations in Cohort Trends in the Black-White Earnings Gap Among Men: Evidence From Administrative Earnings Data," Demography, Springer;Population Association of America (PAA), vol. 56(6), pages 2253-2277, December.
    7. Anderson, D. Mark & Charles, Kerwin Kofi & Rees, Daniel I., 2020. "The Federal Effort to Desegregate Southern Hospitals and the Black-White Infant Mortality Gap," IZA Discussion Papers 13920, Institute of Labor Economics (IZA).
    8. Mitrut, Andreea & Tudor, Simona, 2018. "Bridging the gap for Roma: The effects of an ethnically targeted program on prenatal care and child health," Journal of Public Economics, Elsevier, vol. 165(C), pages 114-132.
    9. Andrew Goodman-Bacon, 2016. "The Long-Run Effects of Childhood Insurance Coverage: Medicaid Implementation, Adult Health, and Labor Market Outcomes," NBER Working Papers 22899, National Bureau of Economic Research, Inc.

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    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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