Discussion
University of Chicago
2026-10-16
Broad acceptance of race as a constructed instead of essential social category
“a socially determined construction with complex biological associations” (Holland, 2008)
On the one hand, so what? Economists are typically less interested in philosophical fights taking place elsewhere in the humanities
Race is clearly real and can’t be just waved away as a “construct”
On the other hand, growing literature demonstrates that fluidity of these social categories matters for measurement and interpretation
President Obama: “I identify as African-American—that’s how I’m treated and that’s how I’m viewed. I’m proud of it”
2010 Pew Poll: 27% of Americans label Obama as Black (55% for those who identify as Black and 24% for whites)
Meaningful fraction of Americans switch racial identities over time (Liebler, 2017)
Freeman et al. (2011): Identical faces categorized as Black more often in low-status clothes
Saperstein and Penner (2012): Racial coding sensitive to history of incarceration (cf. Charles and Guryan, 2011)
Gaddis (2017): Black names given by more educated mothers seen as less Black (e.g., Bria vs. Tamika)
Key point: Even if demographic labels are unchanged, observed characteristics affect how social identity is perceived (e.g., Monk Jr., 2021)
Individuals constantly signal social identity with a variety of actions
“Passing” is possible because racial identities are not strictly tied to innate physical characteristics
You are not Black because you are (in essence) Black; you are Black… because of how you act… because of how you juggle and combine many differently racialized and class(ed) actions (walking, talking, laughing, watching a movie, standing, emoting, partying) in an everyday matrix of performative possibilities (Jackson Jr., 2010)
These ideas are increasingly penetrating the econosphere
Cornwell, Rivera, Schmutte (2017): wage changes in Brazil are associated with changes in racial categorization
Adukia, Hornbeck, Keniston, Lualdi (2026): wealth and literacy predict enumerator categorization conditional on skin tone in 1870 Census
Rose (2023): Race gaps in skin shade and distinctive speech in NLSY shrink with demographic, education, and AFQT controls, along with wage gaps
I view this paper as the richest empirical exploration of these ideas to date
There is a lot in this paper, including a very beefy appendix!
What do I take away?
Some amazing facts buried in the appendix:
Would love to see more analysis of these firm effects, e.g.,
These labor market history variables seem like first-order inputs to the “race function,” especially when we’re considering wage gaps
Two areas where I would like to learn more:
Race as continuous vs. discrete categorization
Endogenous inputs in the race function
Paper primarily treats racial categorization as a discretization of underlying latent perception:
\[ r^q = A_q(Z) + u^q \\ R^q = 1 \{ r^q \geq \tau_q \} \]
Implies that changing \(Z\) changes both categorization at the margin (\(Pr(R^q = 1)\)) and inframarginal perceptions (distribution of \(r^q \mid R^q = 1\))
Not obvious that people respond to discrete categories vs. how white/black someone seems
E.g., strong colorism gradient among people with same self- or employer-ascribed race
Perhaps we could learn more about effects of shifting cues among the inframarginal groups here
Allowing outcomes to depend on \(r^q\) vs. \(R^q\) also has obvious implications for the perception-normalized disparity (PND)
Analogy to IV is discretizing a continuous treatment; creates exclusion issues when instruments shift treatment along intensive margin
Authors are very careful to treat the PND as a measurement and not causal exercise, but I would like to see versions that attempt to normalize using differences in the distribution of \(r^q\) rather than \(Pr(r^q \geq \tau_q)\)
Long history of race as an endogenously shaped identity (e.g., Coate and Loury, 1993; Steele, 2010; Austen-Smith and Fryer, 2005)
How much of the differences across self- and employer-ascribed categories, as well as changes in categorization across groups, reflects choices in how people present?
Obviously a hard problem, but interesting opportunities here:
Would bring a little more econ to the paper by thinking about the behavioral margins underlying the very interesting empirical facts
Impressive, interesting work
Incredibly detailed and credible analysis
Probably several more papers to write just using this merge