To the extent that disparities in income and wealth across race, ethnicity, gender, or geography reflect such disparities in opportunity, families and small businesses from the disadvantaged groups will then underinvest in education or business endeavors, and potential growth will fall short of the levels it might otherwise attain.
5  4  For evidence on the relationship between monetary policy and labor market disparities between some demographic groups, see Carpenter and Rodgers (2004). 5 For more on inequality of opportunity see Marrero and Rodriquez (2013).