Racial Differentials in the Wealth Effects of the Financial Crisis and Great Recession

Ryan Compton, Daniel Giedeman and Leslie Muller ()
Additional contact information
Leslie Muller: Grand Valley State University

Journal of Economics, Race, and Policy, 2018, vol. 1, issue 2, No 7, 126-141

Abstract: Abstract The financial crisis of 2007–2009 was arguably the most severe financial crisis in American history and the subsequent Great Recession was the worst economic downturn in the USA since the Great Depression. In this paper, we analyze data from the Panel Survey of Income Dynamics (PSID) to examine the effects of the crisis and recession on the wealth of White and Black families using graphical, cross section, and panel empirical models. While other studies have measured the short-term effects of the crisis and recession on American household wealth, we are able to look at longer-term wealth effects by incorporating data from the recently released 2015 wave of the PSID. Our results indicate that the negative consequences of the economic downturn on Black families’ wealth were severe and longer-lasting than for White families.

Keywords: D31; I31; J15; Great recession; Inequality; Race; Wealth (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://link.springer.com/10.1007/s41996-018-0015-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:joerap:v:1:y:2018:i:2:d:10.1007_s41996-018-0015-7

Ordering information: This journal article can be ordered from
https://www.springer ... policy/journal/41996

DOI: 10.1007/s41996-018-0015-7

Access Statistics for this article

Journal of Economics, Race, and Policy is currently edited by Gary A. Hoover

More articles in Journal of Economics, Race, and Policy from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().