I mean, maybe? More likely the "sniff test" is just an excuse for someone to ignore facts that they don't wish to admit or acknowledge
We're calculating cost of college, time of college and lost potential wages, career progression and loss of potential wages.
We have to underestimate the cost of oppression because the parameters of the study are only for interviews and not for hires, so we'd need to see who filters black interviewees with white names, a much harder more expensive study that puts more burden on people just trying hire someone.
So we get say 5 years of lost college time wages (6 is average but round down, favoring the privileged) in today's pay say this is entry level so call it $100,000, $120,000. Then there's average cost of college which is, we'll keep it lower, about $15,000 a year for 6 years for 90k. We'll round em both to $200,000. We could literally stop there, very conservatively.
But we've only accounted high school and college here. We need to add in the high school convict to high school grad with no record leg. Googled it and, just for the sake of this post, we'll take the no time lost part that the google search
highlighted so -22%. To gain that back we need +28.2%.
So now we're at $250,000.
We'll hold off on life expectancy differences (for education and race) for this one. We are also going to hold off on time advantage for when you have enough money to start investing and how much it gets to compound. Leaving this out favors the priveleged. Anyway, Forbes says we work 48 years on average. Round to 50 (this also favors the privileged btw).
Seems salaries peak 45-55, are close ish 35 and 65, mostly low your starting years
https://dqydj.com/average-median-top-salary-by-age-percentiles/. So while yes college correlates to longer life, we're leaving that out as well. Ceteris paribus, 5 years less of working which is, ultimately coming off the back end, being lost marginal years.
Now we have some trouble, the college wage premium lifelong is about 1 million. But the callbacks take us to parity in jobs that are high school level. How do we track expected earnings? Let's shortcut this as well as relax overfitting to this study, even though that study is the point of the exercise:
https://www2.ed.gov/policy/highered/reg/hearulemaking/2011/collegepayoff.pdf we get black college grads at -20% in lifetime earnings. That's about $500,000. And again income, not wealth, no compounding investments accounted for. Obviously we've left the realm of tighter variables into the realm of lots of compounding variables (see: gender wage gap; unlikely different industries with their requirements linearly scale in bias.).
But now we're looking at minimum $250,000, and a suggested $500,000.
If we didn't jump ship at the 500k we'd take the $250k and then just eyeballing averages here (no division of education)
https://dqydj.com/average-median-top-salary-by-age-percentiles/ pulling the final 5 years, we can go to the end for lower numbers, eyeballing it looks like $300k. So add those and you get $550,000.
We've been consistently rounding along the way (very naughty) and we'll continue to round, the 550k to the 500k. Funny how close those numbers were.
But don't forget the prison premium! Subtract back the 50k, then multiply it all by 1.282. 576900. Now let's round in the favor of our oppressed for once, but less than we rounded against.
$600,000.