AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Race, Police Violence, and Financial Decision-Making
AEA Papers and Proceedings
vol. 114,
May 2024
(pp. 163–68)
Abstract
We find an economically and statistically significant effect of race-based police violence on home ownership and retirement savings. Using restricted-use Panel Study of Income Dynamics data, we show that Black individuals exposed to the fatality of a Black person caused by or involving police subsequently experience decreased homeownership, home equity, and defined contribution pension participation relative to non-Black individuals in the same zip code. Our findings suggest that race-based violence affects not only those immediately involved but also entire racial communities in the vicinity. These decreases in illiquid assets imply negative long-term consequences for Black households' wealth accumulation.Citation
Bogan, Vicki L., Lisa A. Kramer, Chi Liao, and Alexandra Niessen-Ruenzi. 2024. "Race, Police Violence, and Financial Decision-Making." AEA Papers and Proceedings, 114: 163–68. DOI: 10.1257/pandp.20241101Additional Materials
JEL Classification
- G51 Household Finance: Household Saving, Borrowing, Debt, and Wealth
- H76 State and Local Government: Other Expenditure Categories
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J32 Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
- K42 Illegal Behavior and the Enforcement of Law
- R31 Housing Supply and Markets