The long run effects of de jure discrimination in the credit market: How redlining increased crime

John Anders

Journal of Public Economics, 2023, vol. 222, issue C

Abstract: Today in the United States the welfare costs of crime are disproportionately borne by individuals living in predominately African-American or Hispanic neighborhoods. This paper shows that redlining practices established in the wake of the Great Depression made lasting contributions to this inequity. First I use an unannounced population cutoff that determined which cities were redline mapped to show that redline mapping increased present-day city level crime. Secondly, I use a spatial regression discontinuity to show that redlining influenced the present-day neighborhood level distribution of crime in Los Angeles, California. I also identify channels though which redline mapping influenced crime including increasing racial segregation and decreasing educational attainment.

Keywords: Crime; Redlining; Discrimination; Education; Housing (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:222:y:2023:i:c:s0047272723000397

DOI: 10.1016/j.jpubeco.2023.104857

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