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Does Cognitive Ability Mediate Black-White Income Disparities in the USA?
Simon Wright, Bryan J. Pesta and Emil O. W. Kirkegaard
Published: 2024/09/01
Abstract
Much research has focused on the putative causes of income differentials between American Blacks and Whites. Few studies, however, have explored whether average cognitive ability differences between these groups can explain the gaps. This is despite IQ (intelligence quotient) scores being a potent predictor of various measures of well-being, including both personal and household income. Thus, we investigated whether average intelligence differences between American Blacks and Whites can mediate income differentials, over and above the test-takers’ self- and/or other-perceived race (i.e., a control for “Colorism” as an explanation for disparate treatment). We did so by examining data from five large, nationally representative US datasets (e.g., the General Social Survey), and by using structural equation modeling (SEM) to first construct a general factor of intelligence (g) corrected for measurement error. Except with the NLSY97 dataset, we found that g fully mediated the personal income difference between Blacks and Whites, but that race gaps in household income still persisted. Our results suggest that race may also influence spousal income and marital choice, and our data underscore the need to include group intelligence differences when attempting to understand race-based income disparities in the USA. Keywords: Black-White differences, Income, Intelligence, Discrimination, IQ, USA, Structural equation modeling
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