Income inequality and minority labor market dynamics: Medium term effects from the Great Recession

Salvador Contreras, Amit Ghosh and Iftekhar Hasan

Economics Letters, 2021, vol. 199, issue C

Abstract: Using a difference-in-differences framework we evaluate the effect that exposure to a bank failure in the Great Recession period had on income inequality. We find that it led to a 1% higher Gini, relative rise of 38 cents for high earners, and 7% decline for lowest earners in treated MSAs. Moreover, we show that blacks saw a decline of 10.2%, Hispanics 9.8%, and whites 5.1% in income. Low income blacks and Hispanics drove much of the effect on inequality.

Keywords: Bank failures; Income inequality; Minority income (search for similar items in EconPapers)
JEL-codes: G21 G38 O15 R11 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:199:y:2021:i:c:s0165176520304778

DOI: 10.1016/j.econlet.2020.109717

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