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Abstract:
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Black is not always black. Subtle distinctions in skin tone translate into significant
differences in outcomes. Data on more than 15,000 households interviewed during the 1860 US
federal census exhibit sharp differences in wealth holdings between white, mulatto, and black
households in the urban South. We document these differences, investigate relationships between
wealth and recorded household characteristics, and decompose the wealth gaps to examine the
returns to racial characteristics. The analysis reveals a distinct racial hierarchy. Black wealth
was only 20% of white wealth, but mulattoes held nearly 50% of whites’ wealth. This advantage
is consistent with colourism, the favouritism shown to those of lighter complexion. |