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Racial and Ethnic Discrimination in Local Consumer Markets: Exploiting the Army’s Procedures for Matching Personnel to Duty Locations

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Author Info
Deborah A. Cobb Clark
Heather Antecol

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Abstract

We use the exogenous assignment of Army personnel to duty locations to analyze the relationship between the characteristics of local markets and the propensity for consumers to be subjected to racial discrimination in their everyday commercial transactions. Overall, one in ten soldiers report that they or their families have experienced racial discrimination in finding non-government housing or in patronizing businesses in their local communities. Discrimination is related to a community’s demographic profile with white and Asian soldiers feeling more unwelcome in local businesses as the local population becomes heavily weighted towards other groups. Moreover, there is evidence that increased economic vulnerability in the community results in more housing discrimination amongst minorities. While the evidence that increased competition reduces consumer market discrimination is mixed, it is clear that discrimination is related to the nature of a soldier’s interaction with the local community.

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Paper provided by Centre for Economic Policy Research, Research School of Social Sciences, Australian National University in its series CEPR Discussion Papers with number 544.

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Date of creation: Dec 2006
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Handle: RePEc:auu:dpaper:544

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Related research
Keywords: Consumer Markets; discrimination; U.S. Military; Economics of Minorities;

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Find related papers by JEL classification:
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
D40 - Microeconomics - - Market Structure and Pricing - - - General

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Heather Antecol & Deborah A. Cobb-Clark, 2008. "The Effect of Community-Level Socio-Economic Conditions on Threatening Racial Encounters," CEPR Discussion Papers 589, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
    Other versions:
  2. Scott Carrell & Jonathan Zinman, 2008. "In harm’s way? Payday loan access and military personnel performance," Working Papers 08-18, Federal Reserve Bank of Philadelphia. [Downloadable!]
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