Racially Charged Police Enforcement Has Cost the U.S. Economy $53 Billion to $220 Billion in Lost Productivity

There is a major difference in the drug arrest rate and incarceration rates between Black and White individuals. However, the drug use rate across the two groups is similar (and has been over time). This study estimates the lost productivity over time of people arrested on drug charges because they are Black. Ceteris Paribus, if those using the drugs were White, instead of Black, at the point of arrest and incarceration, what would have been their additional productivity levels over their lives? In this study I estimate this lost productivity to be $53 billion to $220 billion from 1980–2018 (in 2019-dollars), suggesting that the Lucas wedge is substantial for racial drug arrests.

Seeing Covid-19 Through a Subprime Crisis lens: How Structural and Institutional Racism Have Shaped 21st-Century Crises in the U.K. and the U.S.

This special issue aims to use historical examples to gain insight into the socio-economic impact of, and possibilities of recovery from, the Covid-19 pandemic for Black communities. We approach this question by comparing the impact of the pandemic on Black Britons in the United Kingdom with that of the 2008 subprime crisis on Black Americans. We find that, in both cases, a pattern of racially asymmetric losses and race-neutral policy responses that have systematically ignored the disparate losses borne by Black and racial/ethnic minority communities. Both patterns are manifestations of these countries’ institutional racism. Relying on insights from stratification economics and using the concept of “racial formation” introduced by Harold Baron in 1985, we show how these nations’ historical relationships to slavery and imperialism have led to different structures of racial control. Our review of U.K. government policy includes a critique of the March 2021 report of the U.K. Commission on Race and Ethnic Disparities.

Environmental Justice: Segregation, Noise Pollution and Health Disparities near the Hartsfield-Jackson Airport Area in Atlanta

The inquiry in this paper has two parts: (1) an examination of potential disparities in exposure to airport noise pollution between Blacks (non-Hispanic) and Whites (non-Hispanic) around the Atlanta Hartsfield-Jackson airport (AHJA) area, and (2) a binary logistic regression analysis studying factors contributing to these disparities. The proposed model is that the difference in noise exposure measured by Net Exposure Difference score is a function of the degree of Black-White residential segregation; differences in poverty rates between Blacks and Whites; some socio-economic-demographic variables and four health indicators - noise annoyance (NA); sleep disturbance (SD); hearing impairment (HI); and cardiovascular disorder (CVD). A stratified random sampling method and telephonic survey using a 43-questions questionnaire among the adult households around the AHJA area produced 237 observations on Black and White households over a period of 2 years. Parameter estimates reveals disparities in exposure to aircraft noise exposure between the Black and White households within the 10-mile radius of the airport area indicating environmental injustice. The odds-ratios from the binary logistic regression suggests residential segregation, difference in poverty rates, race, education, as well as health conditions like hearing impairment and sleep disturbances have a statistically significant association with this disparity in noise exposure.

The Pursuit of Happiness: A Calculation of the Hidden Costs of Being Black in the 21st Century

There is no shortage of evidence documenting glaring disparities on important socioeconomic and health indicators between White and Black Americans. Persistent racial disparities are the consequence of a historic system of structural racism. Given ongoing inequities in nearly every realm of American life, we aim to calculate the contemporary cost of racial inequity. We contribute to a growing body of literature concerning the “hidden cost” of being Black by employing a novel methodological approach and centering a paradigm of intersectionality ( Crenshaw, 1991 ; Shapiro, 2004 ). Specifically, we account for the disparities in health and income between Blacks and Whites by using the compensating and equivalent surplus frameworks to calculate willingness to accept (WTA) and willingness to pay (WTP) estimates. We estimate the WTP to avoid the disparity in health, income, and wellbeing between Black and White Americans, to be between approximately $38,000 and $45,000 per year per person using the Behavioral Risk Factor Surveillance System as well as the General Social Survey, respectively. These estimates can be interpreted as the annual willingness to pay by an average White person to avoid the disparities in income and health experienced by the average Black person.

Computerization and Occupational Change: Assessing the Impact of Automation on Racial and Gender Employment Densities

The current wave of technological change is driven by automation, the process of using computers to improve the labor process, viz., increasing the quantity and quality of work “by means of computer-controlled equipment.” Automation has had and will continue to have heterogeneous economic effects across alternative social groups—altering racial and gender inequality. This study empirically examines the relationship between the racial and gender density of occupations and the probability of automation of both minor and broad occupations. Regression analysis is used to uncover correlations between future employment change and the current racial and ethnic composition of occupations, alerting us to whether future employment growth will have a negative or positive association with occupations where each racial group of workers is currently concentrated. Increases in automation are correlated with increases in labor income inequality and increases in racial and gender employment differences. Male jobs may suffer more technological unemployment than female jobs. Specifically, within each racial group high density male jobs have a greater probability of automation (and lower probability of future demand) than high density female jobs. High density White female jobs appear to be most complementary to automation, while the high density occupations of racial minority men appear to be least complementary to automation.

Entrepreneurship and Labor Absorption: Blacks and Whites in Northern U.S. Cities During the Great Depression

An extensive literature on newly developing societies shows that the urban economy's entrepreneurial sector can absorb a sizable share of persons who are unemployed and searching for work. Surprisingly, however, little research on the United States has examined entrepreneurship's labor absorption capacity. The present study fills this gap by analyzing Blacks and Whites in northern U.S. cities during the Great Depression, a time of widespread joblessness, particularly among Blacks. The results suggest that, if not for Blacks’ uniquely severe resource deprivation, Black entrepreneurship could have absorbed a large number of jobless Blacks. Labor absorption estimates, calculated with 1940 Census data, indicate that one-third of the Black-White unemployment difference is attributable to racial inequality of entrepreneurial outcomes. This historical evidence advances social-scientific understanding of racial inequality during the Great Depression and informs a longstanding debate about the merits of promoting Black business ownership as a strategy for improving Blacks’ labor market prospects.

Determinants of Racial Disparities in Female Incarceration Rates, 2000–2018

In The Growth of Incarceration in the United States, the National Research Council documents the large and persistent racial disparities in imprisonment that accompanied the more than quadrupling of the U.S. incarceration rate since the 1980s. Largely unnoticed by policy makers and opinion leaders in recent years is an unprecedented decrease in the number of African American women incarcerated at the same time that the number of white women in prison has grown to new heights. The result of these recent changes is a near convergence in black-white female incarceration rates from 2000 to 2016. In some states, the changes occurred abruptly and almost instantaneously. In other states, the convergence has been gradual. We find that changes in the population composition—the fraction of the population that is black—was the major contributor to the decline in the disparity among women. We also find that race-specific differences in drug overdose deaths stemming from the recent increases in opioid use lowered the disparity by increasing the white female imprisonment rate and lowering it for black women.

Layers of Inequality: Unequal Opportunities and Skin Color in Mexico

We document the contribution of skin color toward quantifying inequality of opportunity over a proxy indicator of wealth. Our Ferreira–Gignoux estimates of inequality of opportunity as a share of total wealth inequality show that once parental wealth is included as a circumstance variable, the share of inequality of opportunity rises above 40%, overall and for every age cohort. By contrast, the contribution of skin tone to total inequality of opportunity remains minor throughout.

In Memoriam: Thaddeus H. Spratlen

In Memoriam—Thaddeus H. Spratlen.