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Human capital in the inner city

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  • Dionissi Aliprantis

Abstract

Black males in the United States are exposed to tremendous violence at young ages: In the NLSY97 26 percent report seeing someone shot by age 12, and 43 percent by age 18. This paper studies how this exposure to violence and its associated social isolation affect education and labor market outcomes. I use Elijah Anderson?s ethnographic research on the ?code of the street? to guide the specification of a model of human capital accumulation that includes street capital, the skills and knowledge useful for providing personal security in neighborhoods where it is not provided by state institutions. The model is estimated assuming either selection on observables or dynamic selection with permanent unobserved heterogeneity. Counterfactuals from these estimated models indicate that exposure to violence has large effects, decreasing the high school graduation rate between 6.1 and 10.5 percentage points (20 and 35 percent of the high school dropout rate) and hours worked between 3.0 and 4.0 hours per week (0.15 and 0.19 s).

Suggested Citation

  • Dionissi Aliprantis, 2013. "Human capital in the inner city," Working Papers (Old Series) 1302, Federal Reserve Bank of Cleveland, revised 2013.
  • Handle: RePEc:fip:fedcwp:1302
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    Cited by:

    1. repec:eee:jeborg:v:159:y:2019:i:c:p:572-597 is not listed on IDEAS
    2. repec:wly:quante:v:9:y:2018:i:1:p:247-303 is not listed on IDEAS
    3. repec:red:issued:18-222 is not listed on IDEAS
    4. Ivan G. Lopez Cruz, 2015. "Policing, Schooling and Human Capital Accumulation," CAEPR Working Papers 2015-024, Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington.
    5. Hao Jin & Hewei Shen, . "Foreign Asset Accumulation among Emerging Market Economies: a Case for Coordination"," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics.
    6. Dionissi Aliprantis & Daniel R. Carroll, 2018. "Neighborhood dynamics and the distribution of opportunity," Quantitative Economics, Econometric Society, vol. 9(1), pages 247-303, March.

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    Keywords

    Occupational choice; Human capital; Income distribution;

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