This article examines competing theoretical claims regarding how an individual's education will affect his or her likelihood of interracial marriage. I demonstrate that prior models of interracial marriage have failed to adequately distinguish the joint and marginal effects of education on interracial marriage and present a model capable of distinguishing these effects. I test this model on black-white interracial marriages using 1980, 1990, and 2000 U.S. census data. The results reveal partial support for status exchange theory within black male-white female unions and strong isolation of lower-class blacks from the interracial marriage market. Structural assimilation theory is not supported because the educational attainment of whites is not related in any consistent fashion to the likelihood of interracial marriage. The strong isolation of lower-class blacks from the interracial marriage market has gone unnoticed in prior research because of the failure of prior methods to distinguish joint and marginal effects.

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Exchange of racial for educational status has been documented for black/white marriages in the United States. Exchange may be an idiosyncratic feature of U.S. society, resulting from unusually strong racial boundaries historically developed there. We examine status exchange across racial lines in Brazil. In contrast to the United States, Brazil features greater fluidity of racial boundaries and a middle tier of "brown" individuals. If exchange is contingent on strong racial boundaries, it should be weak or non-existent in Brazilian society. Contrary to this expectation, we find strong evidence of status exchange. However, this pattern results from a generalized penalty for darkness, which induces a negative association between higher education and marrying darker spouses ("market exchange") rather than from a direct trading of resources by partners ("dyadic exchange"). The substantive and methodological distinction between market and dyadic exchange helps clarify and integrate prior findings in the status exchange literature.

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Racial distinctions in the United States have long been characterized as uniquely rigid and governed by strict rules of descent, particularly along the black-white boundary. This is often contrasted with countries, such as Brazil, that recognize "mixed" or intermediate racial categories and allow for more fluidity or ambiguity in racial classification. Recently released longitudinal data from the IPUMS Linked Representative Samples, and the brief inclusion of a "mulatto" category in the U.S. Census, allow us to subject this generally accepted wisdom to empirical test for the 1870-1920 period. We find substantial fluidity in black-mulatto classification between censuses-including notable "downward" racial mobility. Using person fixed-effects models, we also find evidence that among Southern men, the likelihood of being classified as mulatto was related to intercensal changes in occupational status. These findings have implications for studies of race and inequality in the United States, cross-national research on racial classification schemes in the Americas, and for how demographers collect and interpret racial data.