ECONorthwest’s Kevin E. Cahill, with co-authors Lawrence M. Spizman and John Kane (State University of New York), presented a paper titled, “The Effect of Using Race-Neutral Models to Estimate Lifetime Earnings for Children,” at the NAFE Eastern Economic Association Meetings on February 26, 2021. The authors find that, due to wide variation within racial and ethnic groups, excluding race and ethnicity from consideration oftentimes leads to perverse outcomes where underrepresented minorities experience reductions in their estimated lifetime earnings. The authors conclude that legislation designed to eliminate race from consideration may end up harming the very groups that the legislation is intended to help.
The views expressed in the paper are solely those of the authors and do not necessarily reflect the views or opinions of ECONorthwest. Paper available upon request.