Local Public Goods and Jim Crow

Dennis Halcoussis and Anton Lowenberg

Journal of Institutional and Theoretical Economics (JITE), 1998, vol. 154, issue 4, 599-

Abstract: Labor market discrimination and racial segregation can be viewed as part of a more general tendency for residents of a community to limit the community's size or its factor-ownership composition. Statutory segregation is motivated not only by racial prejudice, but also by a desire to maximize factor incomes and the average net benefit obtained from local-public-goods consumption. Race is one of many possible devices that might be used to distinguish community members from non-members. Predictions for racial discrimination and segregation derived from this local-public-goods approach are tested with data from the Jim Crow era.

JEL-codes: D71 H41 J71 N32 (search for similar items in EconPapers)
Date: 1998
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