How Can We Break the Monopoly? Why Economics Needs More Black and Brown Voices

The profession shapes our world—but whose perspectives are missing from the table?

Those of you who follow me know that I usually explain things through an economic prism because those are the tools I acquired in school. In economics, a field pivotal in shaping the policies that govern our daily lives and the future of our societies, there exists a glaring and persistent gap: the need for more diversity.

I am typically the only brown guy in the room at economics-related professional conferences of hundreds of people, or sometimes one of few, something white people have come to accept as ordinary and non-white people see as a malady. Data from the American Economic Association (AEA) reveals that minority economists are significantly underrepresented at major economics conferences. Black economists account for a mere fraction of attendees and speakers (Source: AEA, “Diversity in the Economics Profession: A New Attack on an Old Problem,” 2019).

This deficit is not just a numerical discrepancy but a profound issue that influences economic policy and research, affecting global outcomes and opportunities. It’s why I advocate for more qualified (I emphasize “qualified” to preempt the trolls — but I know it won’t deter them) Black and brown people to hold jobs in national and international decision-making positions in the government, private sector and institutions.

Research has shown what may be intuitive to many, that diverse groups of economists tend to produce more innovative and comprehensive economic analyses. The same study by AEA found that diverse teams of economists were more likely to challenge prevailing assumptions and consider a broader range of economic outcomes.

Broadening the pool from which professional economists are drawn is not just about fairness; it is important, though this is. Two strands of recent research suggest that ensuring the profession produces robust and relevant knowledge is also necessary. Source.

Within the hallowed halls of academia and the corridors of federal government, a homogeneous group has historically dominated the economics profession. This lack of diversity limits the range of perspectives and experiences brought to bear on economic research and policy-making.

According to a report from the American Economic Association (AEA), only about 3% of Ph.D. economists in the U.S. are Black, and Latinx economists make up roughly 4% (Source: AEA, “Report on the Status of Minority Groups in the Economics Profession,” 2020). This underrepresentation highlights the disparity in the academic sphere, underscoring the need for a more diverse pool of educators and researchers.

Minority academic economists are even rarer. While about 30 percent of the US population is black or Hispanic, only 6.3 percent of tenured and tenure-track economics faculty is identified as such (only 4.0 percent of full professors and 8.1 percent of assistants). Source

It’s not just about having a seat at the table either; it’s about whose voices are heard, experiences are considered, and interests are served. The result is we get policies that enhance one group over another. The lack of diversity in economic decision-making positions can lead to policies that disproportionately benefit certain groups over others. For example, a study published in the Journal of Economic Perspectives highlighted that monetary policy decisions made by predominantly white male boards often overlook the economic realities faced by minority communities (Source: JEP, “Monetary Policy and Inequality,” 2020).

The implications of this lack of diversity are far-reaching. Economic policies and research influence everything from education, housing, what part of the city gets its roads fixed, where to increase taxes, monetary policy that affects inflation and interest rates, healthcare, international trade policy, social programs, and environmental regulations.

When the profession lacks diverse voices, it risks creating policies that do not fully address or even recognize the complexities and nuances of the lives of all citizens. The absence of varied perspectives can lead to the oversight of critical issues affecting marginalized communities, reinforcing cycles of inequality and injustice. The lack of diversity in economic decision-making positions can lead to policies that disproportionately benefit certain groups over others.

Roughly speaking, low-income households benefit from a tighter labor market, middle-class households benefit from lower mortgage rates, and wealthy households benefit from capital gains on assets. Source.

Moreover, the field of economics itself suffers from this homogeneity. Without diverse voices, economics is deprived of innovation from the clash and fusion of different perspectives. It limits the field’s ability to adapt, grow, and respond to the changing needs of a global economy of diverse economic and cultural behavior.

Despite these challenges, there is a beacon of hope. A few Black economists are making significant contributions to the field, challenging the status quo and paving the way for a more inclusive profession. These trailblazers contribute valuable insights and research and serve as role models and mentors for the next generation of economists from underrepresented backgrounds. Indeed, I had some economics professors (I studied outside the U.S.) who were Black, female, and Latin, and it made a world of difference in my perspective of the world due to their diverse teachings.

As we reflect on the need for greater diversity in economics, let us celebrate and draw inspiration from some of the notable Black economists who have made and are making an indelible mark on the profession:

Here are 10 famous Black American economists known for their significant contributions to the field:

1. Sadie Tanner Mossell Alexander — The first African-American to earn a Ph.D. in economics, Alexander’s work encompassed civil rights and the economic status of African-Americans.
2. Sir W. Arthur Lewis — Although originally from St. Lucia, Lewis spent a significant part of his career in the United States, where he made substantial contributions to development economics, earning a Nobel Prize in Economics.
3. Thomas Sowell — A senior fellow at Stanford University’s Hoover Institution, Sowell has contributed extensively to economics, social policy, and the history of ideas.
4. William A. Darity Jr. — A professor at Duke University, Darity’s work focuses on inequality in education, employment, and wealth, with a particular emphasis on reparations for African Americans.
5. Lisa D. Cook — An economics professor at Michigan State University, Cook is known for her work on economic growth and development, innovation, and financial institutions.
6. Cecilia Rouse — As the Dean of the Princeton School of Public and International Affairs and a member of President Biden’s Cabinet as Chair of the Council of Economic Advisers, Rouse has focused on labor economics and education.
7. John W. Rogers Jr. — Although primarily known as an investor, Rogers’ work in finance and investment has a significant impact on economic discussions, particularly around minority-owned businesses and financial literacy.
8. Rhonda V. Sharpe — Founder of the Women’s Institute for Science, Equity, and Race (WISER), Sharpe’s work focuses on the intersectionality of race, gender, and the socioeconomic outcomes for women of color.
9. Julianne Malveaux — An economist, author, and social and political commentator, Malveaux has focused on labor, education equity, and the economic impact of politics on African-American communities.
10. Roland G. Fryer, Jr. — A professor at Harvard University and a recipient of the MacArthur “Genius” Fellowship, Fryer’s research includes social economics, race inequality, and education inequality.

The journey towards a more diverse economics profession is fraught with challenges, but the path is being forged by those who dare to imagine a more inclusive and equitable field. Their contributions are not just additions to the body of economic knowledge; they are crucial steps toward a profession that truly reflects the diversity of the societies it aims to serve.