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WARNings – The impact of negative economic news on racial animus

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  • Bestenbostel, Adam
  • Peralta, Abigail

Abstract

Racially charged rhetoric often surrounds layoff events, with specific minorities blamed for the loss of “American jobs.” We examine whether information about impending mass layoffs causes racial animus. Our data consist of information on mass layoff notices linked to Google Search Trends and FBI Hate Crime Statistics. We compare outcomes across areas that vary in the timing of impending mass layoffs. Results indicate an increase in both racist internet searches (1.4 percent) and hate crimes (1.2 percent) following layoff notices.

Suggested Citation

  • Bestenbostel, Adam & Peralta, Abigail, 2026. "WARNings – The impact of negative economic news on racial animus," Journal of Economic Behavior & Organization, Elsevier, vol. 243(C).
    • Handle: RePEc:eee:jeborg:v:243:y:2026:i:c:s0167268125005165
    DOI: 10.1016/j.jebo.2025.107399
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    Keywords

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    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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