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Everyone Steps Back? The Widespread Retraction of Crowd-Funding Support for Minority Creators when Migration Fear is High

John (Jianqiu) Bai, William Kerr, Chi Wan and Alptug Y. Yorulmaz

No 33097, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We study funding gaps on Kickstarter across multiple ethnic groups from 2009-2021. Scaling the concept of racially salient events, we quantify the close co-movement of minority funding gaps in crowd-funding to inflamed political rhetoric surrounding migration. The funding gap for minorities more than doubles in the most inflamed periods compared to baseline. Results are especially acute for Hispanic creators. Distant, mostly white backers are typically important for projects reaching a critical threshold of funding support. Retractions in support for minority creators during tense periods are even spatially, as present in liberal cities as conservative ones.

JEL-codes: D26 G23 J15 L26 M13 (search for similar items in EconPapers)
Date: 2024-11
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Published as John (Jianqiu) Bai & William Kerr & Chi Wan & Alptug Y. Yorulmaz, 2025. "Everyone steps back? The widespread retraction of crowd-funding support for minority creators when migration fear is high," Research Policy, vol 54(1).

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