The Differential Impact of Monetary Policy on Blacks and Whites since the Great Recession

Ejindu S. Ume () and Miesha J. Williams ()
Additional contact information
Ejindu S. Ume: Miami University
Miesha J. Williams: Morehouse College

Journal of Economics, Race, and Policy, 2019, vol. 2, issue 3, No 1, 137-149

Abstract: Abstract This paper studies the differential impact of monetary policy on labor market responses for blacks and whites since the start of the Great Recession. We estimate and quantify these differences using a somewhat unconventional approach to identifying an expansionary monetary policy shock. At the long horizon, we find that black employment is more sensitive to changes in monetary policy than that of whites. However, at the short horizon, black employment falls, whereas white employment immediately increases. Owing to such disparities, one might expect the central bank to be deeply engaged in understanding the causal mechanisms at play. Moreover, our findings raise concern that recent monetary policy tightening may adversely affect blacks disproportionately to whites.

Keywords: Monetary policy; Labor market; Sign restrictions (search for similar items in EconPapers)
JEL-codes: E52 J08 J23 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s41996-018-0010-z Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:joerap:v:2:y:2019:i:3:d:10.1007_s41996-018-0010-z

Ordering information: This journal article can be ordered from
https://www.springer ... policy/journal/41996

DOI: 10.1007/s41996-018-0010-z

Access Statistics for this article

Journal of Economics, Race, and Policy is currently edited by Gary A. Hoover

More articles in Journal of Economics, Race, and Policy from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().