Quantifying the contribution of occupational segregation to racial disparities in health: A gap-closing perspective

Racism causes racial disparities in health, and structural racism has many components. Focusing on one of those components, this paper addresses occupational segregation. I document high onset of work-limiting disabilities in occupations where many workers identify as non-Hispanic Black or as Hispanic. I then pivot to a causal question. Suppose we took a sample from the population and reassigned their occupations to be a function of education alone. To what degree would health disparities narrow for that sample? Using observational data, I estimate that the disparity between non-Hispanic Black and white workers would narrow by one-third. This estimate is credible because of adjustment for lagged measures of demographics, human capital, and health carried out under transparent causal assumptions. The result contributes to understanding about inequality and health by quantifying the contribution of occupational segregation to a disparity: if we took a sample and reassigned occupations, the disparity would narrow but would not disappear. The paper contributes to methodology by illustrating an approach to macro-level claims (how segregation affects a population disparity) that draws on explicitly causal micro-level analyses (potential outcomes for individuals) for which data are abundant.