The Effect of Community-Level Socio-Economic Conditions on Threatening Racial Encounters
Claremont Colleges - Robert Day School of Economics and Finance; Institute for the Study of Labor (IZA)
Deborah A. Cobb-Clark
University of Melbourne - Melbourne Institute of Applied Economic and Social Research; Institute for the Study of Labor (IZA)
IZA Discussion Paper No. 3828
This paper contributes to the emerging literature on racial and ethnic tension by analyzing the relationship between local socio-economic conditions and the propensity for outsiders to have threatening racial encounters with insiders. We use unique data for a sample of active-duty Army personnel that allow us to first, link personnel to the local communities in which they are located and second, to avoid any selectivity bias associated with endogenous community selection. We find at best mixed evidence that racial hostility is related to economic vulnerability within a community and no evidence that racial conflict can be linked to the level of public expenditure. Crime rates, however, are closely related to the incidence of threatening racial encounters and while a community's demographic profile is also clearly linked to racial tension, these relationships cannot be easily generalized across minority groups or type of threatening racial encounter.
Number of Pages in PDF File: 40
Keywords: racial and ethnic tension, U.S. military, economics of minorities
JEL Classification: D74, J15working papers series
Date posted: November 25, 2008
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