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Keywords:Racial discrimination 

Stakeholders’ Aversion to Inequality and Bank Lending to Minorities

We find that banks differ in their propensity to lend to minorities based on their stakeholders’ aversion to inequality. Using mortgage application data collected under the Home Mortgage Disclosure Act, we document a large and persistent cross-sectional variation in banks’ propensity to lend to minorities. Inequality-averse banks have a higher propensity to lend to borrowers in high-minority areas and, within census tracts, to non-white borrowers compared to other banks. This higher propensity (i) is not explained by selection of applicants, (ii) allows these banks to retain and attract ...
Staff Reports , Paper 1079

Discussion Paper
Racial Discrimination in Child Protective Services

Childhood experiences have an enormous impact on children’s long-term societal contributions. Experiencing childhood maltreatment is associated with compromised physical and mental health, decreased educational attainment and future earnings, and increased criminal activity. Child protective services is the government’s way of endeavoring to protect children. Foster care consequently has large potential effects on a child’s future education, earnings, and criminal activity. In this post, we draw on a recent study to document disparities in the likelihood that children of different races ...
Liberty Street Economics , Paper 20231016

Working Paper
Identifying Taste-Based Discrimination: Effect of Black Electoral Victories on Racial Prejudice and Economic Gaps

I test for the causal impact of Black electoral victories in local elections on White Americans’ attitude toward Black Americans. Using Race Implicit Attitude Test scores as a measure of racial prejudice and close-election regression-discontinuity design for causal inference, I find Black electoral victories cause measures of racial bias to rise, by 4% of the average Black-White difference in IAT scores. Simultaneously, they widen racial gaps in unemployment and mortgage denials. Interpreting these close electoral victories as instrumental variables, I find a large causal effect of ...
Working Paper Series , Paper WP-2021-07



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