This paper examines racial income inequality in early twentieth-century Puerto Rico. It finds, surprisingly, that Black men had an income advantage relative to White and Mulatto men in 1910–1920. The effect of race on income in Puerto Rico was smaller than that of other covariates such as urban status, sex, and literacy. A comparison with the state of Louisiana and with the United States as a whole in the same Census years shows that Puerto Rico was exceptional by U.S. standards, displaying much lower levels of racial inequality. Most of the income advantage Black men had can be attributed to the fact that they were more urban than Mulatto or White men, but part of this surprising advantage can be attributed to the existence in the countryside of a layer of skilled Black workers. Overall, Black men had equal or slightly higher occupational scores than Whites. The coexistence of slavery with other forms of coerced labor affecting individuals of all races in the nineteenth century, as well as the emergence of a stratum of Black skilled workers which survived into the twentieth century and thrived economically when the sugar industry experienced an explosive boom after 1898, is at the root of Black income equalization in the Puerto Rican countryside and in the island as a whole during the early twentieth century.
