Ancestral Geography and Earnings Inequality: Cross-National Model of Historical and Cultural Persistence

Earnings inequality continues to be one of the most globally prevalent issues, despite the historical geography, and the persistence of culture, that has affected various aspects for generations. The role of historical settlement, cultural endurance, and ethnic network density on income inequality, moderated by cultural integration, was studied under the purview of the Social Identity Theory. Over the years 2020 to 2024, and among ten countries, using secondary data of ten countries, the research identified the direct and moderating effects through the Structural Equation Modeling technique. It was found that historical settlement and cultural endurance had significant predictive roles on inequality (β = 0.47, p < 0.01 and β = 0.41, p < 0.05, respectively). However, cultural integration diminished the strength of those connections (β = −0.36, p < 0.05). Ethnic network density also elevated inequality, and it was when bonding ties surpassed bridging ties that this occurred (β = 0.39, p < 0.05). This suggests that geospatial and cultural identity persistence affects pay differentials in a variety of different societies. This research proposes new geographical and cultural integration dimensions to Social Identity Theory, enriching its applicability, and suggesting a new avenue for the study of income inequality across different nations and more closely integrating local and global debates around inequality, identity, and institutional inclusivity. Empirical insights help formulate adaptive policies to convert cultural variation into economic resilience and assist countries in closing identity-based inequality gaps through inclusive development.