Anatomy of US Inequality

Author: Oded Galor (Brown University)Daniel C. Wainstock (University of Oxford)
Posted: 5 January 2026

Abstract

Is income inequality in the United States primarily driven by disparities between ethnic groups or within them? The evidence reveals a striking pattern: 96% of U.S. income inequality arises from variation within groups sharing common ancestral origins, far overshadowing the comparatively small share attributable to differences between these groups. This pattern remains remarkably stable across time and regions.
JEL codes: O15, Z13, D63, J15
Keywords: Inequality, Ethnicity, Within Group Inequality, Between Group Inequality