How does racial formation theory explain the relationship between economic opportunity and racial inequality?

Racial formation theory helps us understand how race and economic opportunities are connected by showing that race is not just about skin color but also about social and economic conditions. This theory suggests that society creates and changes racial categories based on historical and economic factors, which can lead to different levels of opportunity for different racial groups. For example, if a certain job market is only accessible to white individuals due to systemic barriers, this creates economic inequality for people of color. As these barriers persist over time, they reinforce stereotypes and limit opportunities, making it harder for those groups to succeed. Thus, racial formation theory illustrates how deeply intertwined race and economic opportunities are in shaping inequality.