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The long run effects of de jure discrimination in the credit market: How redlining increased crime

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  • Anders, John

Abstract

Today in the United States the welfare costs of crime are disproportionately borne by individuals living in predominately African-American or Hispanic neighborhoods. This paper shows that redlining practices established in the wake of the Great Depression made lasting contributions to this inequity. First I use an unannounced population cutoff that determined which cities were redline mapped to show that redline mapping increased present-day city level crime. Secondly, I use a spatial regression discontinuity to show that redlining influenced the present-day neighborhood level distribution of crime in Los Angeles, California. I also identify channels though which redline mapping influenced crime including increasing racial segregation and decreasing educational attainment.

Suggested Citation

  • Anders, John, 2023. "The long run effects of de jure discrimination in the credit market: How redlining increased crime," Journal of Public Economics, Elsevier, vol. 222(C).
    • Handle: RePEc:eee:pubeco:v:222:y:2023:i:c:s0047272723000397
    DOI: 10.1016/j.jpubeco.2023.104857
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