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  • Table 5: Slavery and Racial Inequality

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    Erenee Wade
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    The document analyzes the relationship between slavery and current racial inequality and poverty levels in the United States. Table 5 shows that slavery is robustly correlated with modern income and racial inequality, with the effect persisting even when restricting the analysis to former slave states only. Table 6 then shows that slavery also has a significant positive effect on the share of the population below the poverty level across different model specifications. The document concludes that slavery affects modern poverty rates, especially among African Americans, which contributes to ongoing racial and income inequality in the United States.

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    The document analyzes the relationship between slavery and current racial inequality and poverty levels in the United States. Table 5 shows that slavery is robustly correlated with modern income and racial inequality, with the effect persisting even when restricting the analysis to former slave states only. Table 6 then shows that slavery also has a significant positive effect on the share of the population below the poverty level across different model specifications. The document concludes that slavery affects modern poverty rates, especially among African Americans, which contributes to ongoing racial and income inequality in the United States.

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    8 views1 page

    Table 5: Slavery and Racial Inequality

    Uploaded by

    Erenee Wade
    The document analyzes the relationship between slavery and current racial inequality and poverty levels in the United States. Table 5 shows that slavery is robustly correlated with modern income and racial inequality, with the effect persisting even when restricting the analysis to former slave states only. Table 6 then shows that slavery also has a significant positive effect on the share of the population below the poverty level across different model specifications. The document concludes that slavery affects modern poverty rates, especially among African Americans, which contributes to ongoing racial and income inequality in the United States.

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    of 1

    In Table 5 we focus on racial inequality (measured by horizontal income inequality)10. and the effect of slavery is even more significant.

    11 In Model 1 the dummy for slave states is significant but turns to be negative while the dummies for Southern and North Eastern counties are respectively insignificant and marginally significant. In Model 2 we replace the slave states dummy with the South dummy and then in Model 3 we restrict the estimates to former slave states only. Results for both models are similar to those from Model 1. We therefore can conclude that there is a robust relationship between slavery and current income and racial inequality. Table 5: Slavery and Racial Inequality
    Dependent Variable: Racial Inequality Model 1 Model 2 0.178*** (26.33) 0.0102*** (5.83) 0.00126 (0.41) -0.00537* (-1.75) -0.00647** (-2.16) 0.162*** (22.15) 0.0102*** (5.84) 0.00475 (1.57) -0.00842*** (-2.63)

    Estimation Method: OLS Slaves/Population 1860 Population Density 1860 North East Dummy South Atlantic Dummy Slave States Dummy South Dummy Constant

    Model 3 0.179*** (26.70) 0.0532*** (2.83)

    -0.00597* (-1.95)

    0.0355*** (23.39)

    0.00590* (1.71) 0.0320*** (23.21) 1984 0.40 All Counties

    0.0279*** (10.84) 1050 0.40 Slave States

    Observations 1984 R-squared 0.40 Sample All Counties *** p<0.01, ** p<0.05, * p<0.1. Robust t statistics in parentheses.

    Next in Table 6 we estimate the effect of slavery on the share of the population below the poverty level. As in previous tables in Model 1 we control for former slave states. In Model 2 we replace the slave states dummy with the South dummy. Finally in Model 3 we restrict the estimates to counties in former slave states only. The effect of slavery on the share of the population below poverty is significant and positive under all specifications. It is therefore obvious to infer that slavery affects the poverty rate (which is likely to be more prevalent among blacks) which in turn contributes to the level of racial and income inequality within the country.

    10 11

    See Data Appendix. Consistently, in Lagerlf (2005) slavery increases white income and decreases black income.

    13

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