What Did Minorities Do Post 2008?

43 Pages Posted: 14 Jan 2020 Last revised: 14 Jul 2021

See all articles by Yosef Bonaparte

Yosef Bonaparte

University of Colorado at Denver - Department of Finance

Sarah Khalaf

Kuwait University

George M. Korniotis

University of Miami; Miami Business School; University of Miami - Behavioral Decision Making Cluster

Multiple version iconThere are 2 versions of this paper

Date Written: December 2019

Abstract

We study the behavior of minorities over the 2007-09 period. We find that, despite the Great Recession, post-2008 and compared to white Americans, minorities have a higher propensity to increase risk tolerance, optimism, and allocations to risky assets and lower probability of exiting the stock market. These findings cannot be explained by changes in wealth or income and we ascribe them to the positive effects of the election of President Obama who is a role model for minorities. Overall, increased visibility of minority role models may encourage investing in risk assets by minorities and potentially alleviate the racial wealth gap.

JEL Classification: D14, G11, J15

Suggested Citation

Bonaparte, Yosef and Khalaf, Sarah and Korniotis, George M., What Did Minorities Do Post 2008? (December 2019). Available at SSRN: https://ssrn.com/abstract=3518604

Yosef Bonaparte (Contact Author)

University of Colorado at Denver - Department of Finance ( email )

United States

Sarah Khalaf

Kuwait University ( email )

Safat, 13060
Kuwait

George M. Korniotis

University of Miami ( email )

P.O. Box 248094
Coral Gables, FL 33124-6552
United States
305-284-5728 (Phone)

Miami Business School ( email )

University of Miami - Behavioral Decision Making Cluster ( email )

5250 University Drive
Coral Gables, FL 33124
United States

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