The Legacy of Slavery and Black-White Wealth Inequality in the Southern United State

The Black-White wealth gap has been a significant topic of research among social scientists studying inequality. Research on the racial wealth gap has emphasized two variables with which to measure wealth: home and business ownership. This body of research often examines relatively contemporary factors that influence racial wealth inequality. However, less attention has been paid to historical influences. Less research has assessed associations between the peculiar institution of slavery and contemporary racial wealth disparities. Because patterns of inequality are shaped over long periods of time, the historical institution of slavery is one element that likely has important implications for the racial wealth disparities we see today. Of course, wealth creation is about the accrual of assets. Yet the literature suggests that since the time of slavery African American efforts to accumulate capital have often been systematically limited. ;This project aims to explore the extent to which the institution of slavery has shaped the development of contemporary levels of economic capital among Black versus White Americans. The project uses data collected from the 1860 historical census, the Census Bureau's Characteristics of Businesses: 2007, and the Census Bureau's 2007 American Community Survey. Building on prior research, I examine the association between the presence and magnitude of slavery in counties in the Southern United States and black/white differences in home and business ownership. Preliminary results show that net of other factors a historically higher slave density in a county is associated with a decrease in black business and home ownership. Conversely, for whites, an increase in slave density is associated with an increase in business and home ownership. Hence, social scientists should be attuned to how the long reach of historical institutions may be implicated in contemporary patterns of economic inequality.