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The Labor Market Effects of the 1960s Riots

  • William J. Collins
  • Robert A. Margo

Between 1964 and 1971, hundreds of riots erupted in American cities, resulting in large numbers of injuries, deaths, and arrests, as well as in considerable property damage concentrated in predominantly black neighborhoods. There have been few studies of an econometric nature that examine the impact of the riots on the economic status of African Americans, or on the cities in which the riots took. We present two complementary empirical analyses. The first uses aggregate, city-level data on income, employment, unemployment, and the area's racial composition from the published volumes of the federal censuses. We estimate the riot effect' by both ordinary least squares and two-stage least squares. The second uses individual-level census data from the Integrated Public Use Microdata Series. The findings suggest that the riots had negative effects on blacks' income and employment that were economically significant and that may have been larger in the long run (1960-1980) than in the short run (1960-1970). We view these findings as suggestive rather than definitive for two reasons. First, the data are not detailed enough to identify the precise mechanisms at work. Second, the wave of riots may have had negative spillover effects to cities that did not experience severe riots; if so, we would tend to underestimate the riots' overall effect.

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File URL: http://www.nber.org/papers/w10243.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10243.

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Date of creation: Jan 2004
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Publication status: published as Gale, W. and J. Pack (eds.) Brookings-Wharton Papers on Urban Affairs 2004. Washington, DC: Brookings Institution, 2004.
Handle: RePEc:nbr:nberwo:10243
Note: DAE LS
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  1. Cutler, David M & Glaeser, Edward L, 1997. "Are Ghettos Good or Bad?," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 827-72, August.
  2. Collins, William J. & Margo, Robert A., 2000. "Residential segregation and socioeconomic outcomes: When did ghettos go bad?," Economics Letters, Elsevier, vol. 69(2), pages 239-243, November.
  3. Edward L. Glaeser & Joseph Gyourko, 2005. "Urban Decline and Durable Housing," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 345-375, April.
  4. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
  5. William Poole, 2000. "Expectations," Speech 65, Federal Reserve Bank of St. Louis.
    • William Poole, 2001. "Expectations," Review, Federal Reserve Bank of St. Louis, issue Mar, pages 1-10.
  6. DiPasquale, Denise & Glaeser, Edward L., 1998. "The Los Angeles Riot and the Economics of Urban Unrest," Journal of Urban Economics, Elsevier, vol. 43(1), pages 52-78, January.
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