Session Honoring The Contributions of William Spriggs to Policy, Economics and the Economics Profession: Segregation, Institutions, and Unions
Paper Session
Saturday, Jan. 3, 2026 12:30 PM - 2:15 PM (EST)
- Chair: Robynn Cox, University of California-Riverside
Quality Employment, Capital Ownership, and the Racial Wealth Gap: The Case of ESOP Employment
Abstract
The racial wealth gap is the largest and one of the most persistent economic differences between Blacks and whites, with Blacks holding one-sixth of the wealth of white Americans today. The drivers of the racial wealth gap are largely due to historical disparities in wealth stemming from historical institutions (e.g., slavery) and policies , as well as other structural barriers that created unequal endowments (starting positions) and conditions for wealth accumulation. While the White-Black per capita wealth ratio has narrowed over time, there has been a re-divergence that has occurred since the 1980s. Key factors for this re-divergence are differences in the composition of wealth between Black and White households and halting income convergence. A multifaceted approach will be required to close the racial wealth gap. Recent research suggests that this approach will include wealth transfer polices such as reparations, policies that close the racial earnings gap, and policies that focus on portfolio composition. Employee ownership and policies that promote it are one potential mechanism put forth to help close the racial wealth gap. Employee ownership not only shifts the composition of wealth portfolios by increasing capital ownership but has also been found to increase earnings within some marginalized communities. One form of employee ownership is employee stock ownership plans (ESOP). This paper investigates whether earnings, non-wage benefits, and net worth significantly differ between employee owners and non-employee owners within race and between race. We also examine the effect of ESOP employment on other wellbeing measures, such as health.Hell with the Lid Off: Racial Segregation and Environmental Equity in America’s Most Polluted City
Abstract
This study examines the changing relationship between racial segregation and environmental equity in Pittsburgh from 1910 to 1940. Utilizing newly digitized historical data on the spatial distribution of air pollution in what was likely America’s most polluted city, we analyze how racial disparities in exposure to air pollution evolved during this period of heightening segregation. Our findings reveal that black residents experienced significantly higher levels of pollution compared to their white counterparts and that this disparity increased over time. We identify within-city moves as a critical factor exacerbating this inequity, with black movers facing increased pollution exposure. In contrast, European immigrants, who were also initially exposed to relatively high levels of pollution, experienced declining exposure as they assimilated over this time period. We also provide evidence of the capitalization of air pollution into housing markets. Taken as a whole, our results underscore the importance of considering environmental factors in discussions of racial and economic inequalities.What Do (Thousands of) Unions Do? Union-Specific Pay Premia and Inequality
Abstract
We study the role of union heterogeneity in shaping wage inequality among union-ized workers. Using linked employer-employee data from Brazil and job moves across multi-firm unions, we estimate over 4,800 union-specific pay premiums. We find that unions explain 3–4% of earnings variation. While unions raise wages on average, this effect conceals substantial heterogeneity. Underscoring the importance of heterogeneity, wages fall in markets with high-premium unions following a nationwide right-to-work law. Linking premiums to detailed union attributes, we find that unions with strikes, collective bargaining agreements, internal competition, and skilled leaders se-cure higher wages. Heterogeneity also matters for between-group inequality: on average, unions slightly widen wage gaps by education, but high-premium unions tend to compress them. Workers support high-premium unions, but only when between-group bargaining differentials are small. Our findings show that unions are not a monolith—their structure and actions shape their wage effects and, consequently, worker support.Do Unions Decrease Earnings Inequality?
Abstract
One of the notable economic trends since the late 1980’s is a dramatic rise in earningsinequality. Several researchers concluded that a significant source of earnings inequality is due to
a large decrease in the unionized fraction of the labor force. The main focus of this paper is to
investigate impact of union density, unemployment, and demographic characteristics on income
inequality (i.e., Gini index). Preliminary results, based on a panel of Metropolitan Statistical Areas
in the United States between 2010 and 2021, indicate that the union membership rate has a
countering effect on growing income inequality. Demographic controls also seem to affect income
inequality. By disaggregating union density, we find the magnitude of its effect on income
inequality is larger in the private sector relative to the public sector. The overall effect of union
density on Gini is driven by the private sector due to its larger share of employment. Accordingly,
the recent upswing in private sector union drives with the backdrop of a tight labor market may
have an important role to play in reducing inequality in the coming years.
Discussant(s)
Omari Swinton
,
Howard University
Jesse Rothstein
,
University of California-Berkeley
Illenin Kondo
,
Federal Reserve Bank of Minneapolis
Ellora Derenoncourt
,
Princeton University
JEL Classifications
- J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining
- J3 - Wages, Compensation, and Labor Costs