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The Effect of Community-Level Socio-Economic Conditions on Threatening Racial Encounters

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Listed:
  • Heather Antecol
  • Deborah A. Cobb-Clark

Abstract

This paper contributes to the emerging literature on racial and ethnic tension by analyzing the relationship between local socio-economic conditions and the propensity for outsiders to have threatening racial encounters with insiders. We use unique data for a sample of active-duty Army personnel that allow us to first, link personnel to the local communities in which they are located and second, to avoid any selectivity bias associated with endogenous community selection. We find at best mixed evidence that racial hostility is related to economic vulnerability within a community and no evidence that racial conflict can be linked the level of public expenditure. Crime rates, however, are closely related to the incidence of threatening racial encounters and while a community’s demographic profile is also clearly linked to racial tension, these relationships cannot be easily generalized across minority groups or type of threatening racial encounter.

Suggested Citation

  • 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 Economics, Australian National University.
  • Handle: RePEc:auu:dpaper:589
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    File URL: https://www.cbe.anu.edu.au/researchpapers/cepr/DP589.pdf
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    References listed on IDEAS

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    Cited by:

    1. Johnston, David W. & Lordan, Grace, 2016. "Racial prejudice and labour market penalties during economic downturns," European Economic Review, Elsevier, vol. 84(C), pages 57-75.
    2. Johnston, David W. & Lordan, Grace, 2014. "When work disappears: racial prejudice and recession labour market penalties," LSE Research Online Documents on Economics 56110, London School of Economics and Political Science, LSE Library.

    More about this item

    Keywords

    racial and ethnic tension; U.S. military; economics of minorities;

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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