  Income inequality between different races in the U.S. is especially large.
This difference is even larger when gender is involved. In a complementary
study, we have developed a dynamic microeconomic model accurately describing
the evolution of male and female incomes since 1930. Here, we extend our
analysis and model the disparity between black and white population in the
U.S., separately for males and females. Unfortunately, income microdata
provided by the U.S. Census Bureau for other races and ethnic groups are not
time compatible or too short for modelling purposes. We are forced to constrain
our analysis to black and white population, but all principal results can be
extrapolated to other races and ethnicities. Our analysis shows that black
females and white males are two poles of the overall income inequality. The
prediction of income distribution for two extreme cases with one model is the
main challenge of this study.

General Finance