Black Reparations and Child Well-Being: A Framework and Policy Considerations

Lisa A. Gennetian, Christina M. Gibson-Davis and William Darity

No 32931, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We offer a child-centric framework for reparations with considerations for policy and implications for child descendants of enslaved African Americans. We apply economic theory of human capital integrated with the theories of bioecological developmental systems to illustrate the multilayered aspects of harm from the legacy of slavery and racism. Our curation of estimates shows that relative to white peers, black children bear more than double the risk in outcomes unfavorable to educational and economic prosperity from birth through young adulthood. We also find that enduring racial wealth differences are larger among households with children than without children, with the child household racial wealth gap in 2019 remaining comparable to that seen 60 years ago. Simulations suggest that a wealth transfer of $130,000 per child during early childhood reduces the black-white gap in high school graduation by 13 percentage points and increases college attendance by 26 percentage points. A review of existing U.S. reparations initiatives shows that few include direct financial transfers or other forms of investments specifically for black families or children. Based on a contemporary survey, we find that black parents with young children express support for reparations in the form of direct cash payments as well as other forms of financial assistance.

JEL-codes: H31 H5 I30 J15 J18 K38 Z1 (search for similar items in EconPapers)
Date: 2024-09
New Economics Papers: this item is included in nep-lab and nep-ure
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