Race, Police Violence, and Financial Decision-Making

Vicki L. Bogan, Lisa Kramer, Chi Liao and Alexandra Niessen-Ruenzi

AEA Papers and Proceedings, 2024, vol. 114, 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.

JEL-codes: G51 H76 J15 J32 K42 R31 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1257/pandp.20241101

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