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

Jung Sakong
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Jung Sakong: https://www.chicagofed.org/people/s/sakong-jung

No WP-2021-07, Working Paper Series from Federal Reserve Bank of Chicago

Abstract: 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 prejudice-based racial discrimination on Black-White economic gaps.

Keywords: Racial discrimination; Racial discrimination Regression discontinuity (search for similar items in EconPapers)
JEL-codes: D91 G41 J15 J71 (search for similar items in EconPapers)
Pages: 36
Date: 2021-05-17
New Economics Papers: this item is included in nep-lma and nep-ure
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DOI: 10.21033/wp-2021-07

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