Estimating Racial Disparities in Economic Outcomes: An Application to Employer-sponsored Retiree Health Insurance and Access to Care

Abstract

This paper reviews different approaches to estimating differences in economic outcomes across groups defined by race, with a focus on whether and how covariates such as education are incorporated in these analyses. My review focuses on the economics literature, but also draws lessons from research on health disparities. Using data from the Current Population Survey and the National Health Interview Survey, I present two examples of estimating Black-white differences in retiree health insurance and cost-related problems with access to medical care. The examples illustrate the importance of estimating Black-white gaps separately for men and for women, whether or not controls for education and other characteristics are included in the model.