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Access to Financing and Racial Pay Gap Inside Firms
July 2023
Working Paper Number:
CES-23-36
How does access to financing influence racial pay inequality inside firms? We answer this question using the employer-employee matched data administered by the U.S. Census Bureau and detailed resume data recording workers' career trajectories. Exploiting exogenous shocks to firms' debt capacity, we find that better access to debt financing significantly narrows the earnings gap between minority and white workers. Minority workers experience a persistent increase in earnings and also a rise in the pay rank relative to white workers in the same firm. The effect is more pronounced among mid- and high-skill minority workers, in areas where white workers are in shorter supply, and for firms with ex-ante less diverse boards and greater pre-existing racial inequality. With better access to financing, minority workers are also more likely to be promoted or be reassigned to technology-oriented occupations compared to white workers. Our evidence is consistent with access to financing making firms better utilize minority workers' human capital.
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Using Restricted-Access ACS Data to Examine Economic and Noneconomic Factors of Interstate Migration By Race and Ethnicity
March 2023
Working Paper Number:
CES-23-12
We explore how determinants of internal migration differ between Black non-Hispanics, White non-Hispanics, and Hispanics using micro-level, restricted-use American Community Survey (ACS) data matched to data on attributes of sub-geographies down to the county level. This paper extends the discussion of internal migration in the U.S. by not only observing relationships between economic and noneconomic factors and household-level propensities to migrate, but also how these relationships differ across race and ethnicity within smaller geographies than have been explored in previous literature. We show that when controlling for household and location characteristics, minorities have a lower propensity to migrate than White households and document nuances in the responsiveness of internal migration to individual and locational attributes by racial and ethnic population subgroups.
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Universal Preschool Lottery Admissions and Its Effects on Long-Run Earnings and Outcomes
March 2023
Working Paper Number:
CES-23-09
We use an admissions lottery to estimate the effect of a universal (non-means tested) preschool program on students' long-run earnings, income, marital status, fertility and geographic mobility. We observe long-run outcomes by linking both admitted and non-admitted individuals to confidential administrative data including tax records. Funding for this preschool program comes from an Indigenous organization, which grants Indigenous students admissions preference and free tuition. We find treated children have between 5 to 6 percent higher earnings as young adults. The results are strongest for individuals from the lower half of the household income distribution in childhood. Likely mechanisms include high-quality teachers and curriculum.
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Is Affirmative Action in Employment Still Effective in the 21st Century?
November 2022
Working Paper Number:
CES-22-54
We study Executive Order 11246, an employment-based affirmative action policy tar geted at firms holding contracts with the federal government. We find this policy to be in effective in the 21st century, contrary to the positive effects found in the late 1900s (Miller, 2017). Our novel dataset combines data on federal contract acquisition and enforcement with US linked employer-employee Census data 2000'2014. We employ an event study around firms' acquiring a contract, based on Miller (2017), and find the policy had no ef fect on employment shares or on hiring, for any minority group. Next, we isolate the impact of the affirmative action plan, which is EO 11246's preeminent requirement that applies to firms with contracts over $50,000. Leveraging variation from this threshold in an event study and regression discontinuity design, we find similarly null effects. Last, we show that even randomized audits are not effective, suggesting weak enforcement. Our results highlight the importance of the recent budget increase for the enforcement agency, as well as recent policies enacted to improve compliance
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Diversity and Labor Market Outcomes in the Economics Profession
July 2022
Working Paper Number:
CES-22-26
While the lack of gender and racial diversity in economics in academia (for students and professors) is well-established, less is known about the overall placement and earnings of economists by gender and race. Understanding demand-side factors is important, as improvements in the supply side by diversifying the pipeline alone may not be enough to improve equity in the profession. Using the Survey of Earned Doctorates (SED) linked to Longitudinal Employer-Household Dynamics (LEHD) jobs data, we examine placements and earnings for economists working in the U.S. after receiving a PhD by gender and race. We find enormous dispersion in pay for economists within and across sectors that grows over time. Female PhD economists earn about 12 percent less than their male colleagues on average; Black PhD economists earn about 15 percent less than their white counterparts on average; and overall underrepresented minority PhD economists earn about 8 percent less than their white counterparts. These pay disparities are attenuated in some sectors and when controlling for rank of PhD granting institution and employer.
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Age, Sex, and Racial/Ethnic Disparities and Temporal-Spatial Variation in
Excess All-Cause Mortality During the COVID-19 Pandemic: Evidence from Linked Administrative and Census Bureau Data
May 2022
Working Paper Number:
CES-22-18
Research on the impact of the COVID-19 pandemic in the United States has highlighted substantial racial/ethnic disparities in excess mortality, but reports often differ in the details with respect to the size of these disparities. We suggest that these inconsistencies stem from differences in the temporal scope and measurement of race/ethnicity in existing data. We address these issues using death records for 2010 through 2021 from the Social Security Administration, covering the universe of individuals ever issued a Social Security Number, linked to race/ethnicity responses from the decennial census and American Community Survey. We use these data to (1) estimate excess all-cause mortality at the national level and for age-, sex-, and race/ethnicity-specific subgroups, (2) examine racial/ethnic variation in excess mortality over the course of the pandemic, and (3) explore whether and how racial/ethnic mortality disparities vary across states.
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Metropolitan Segregation: No Breakthrough in Sight
May 2022
Working Paper Number:
CES-22-14
The 2020 Census offers new information on changes in residential segregation in metropolitan regions across the country as they continue to become more diverse. We take a long view, assessing trends since 1980 and extrapolating to the future. These new data mostly reinforce patterns that were observed a decade ago: high but slowly declining black-white segregation, and less intense but hardly changing segregation of Hispanics and Asians from whites. Enough time has passed since the civil rights era of the 1960s and 1970s to draw this conclusion: segregation will continue to divide Americans well into the 21st Century.
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The Long Run Impacts of Court-Ordered Desegregation
April 2022
Working Paper Number:
CES-22-11
Court ordered desegregation plans were implemented in hundreds of US school districts nationwide from the 1960s through the 1980s, and were arguably the most substantive national attempt to improve educational access for African American children in modern American history. Using large Census samples that are linked to Social Security records containing county of birth, we implement event studies that estimate the long run effects of exposure to desegregation orders on human capital and labor market outcomes. We find that African Americans who were relatively young when a desegregation order was implemented in their county of birth, and therefore had more exposure to integrated schools, experienced large improvements in adult human capital and labor market outcomes relative to Blacks who were older when a court order was locally implemented. There are no comparable changes in outcomes among whites in counties undergoing an order, or among Blacks who were beyond school ages when a local order was implemented. These effects are strongly concentrated in the South, with largely null findings in other regions. Our data and methodology provide the most comprehensive national assessment to date on the impacts of court ordered desegregation, and strongly indicate that these policies were in fact highly effective at improving the long run socioeconomic outcomes of many Black students.
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Mortality in a Multi-State Cohort of Former State Prisoners, 2010-2015
February 2022
Working Paper Number:
CES-22-06
Previous studies report that individuals who have been imprisoned have higher mortality rates than their demographic counterparts in the general population, particularly non-Hispanic white former prisoners. Most of these studies have been based on a single state's prison system, and the extent to which their findings can be generalized has not been established. In this study we explore the role that race/Hispanic origin, other demographic characteristics, and custodial/ criminal history factors have on post-release mortality, including on the timing of deaths. We also assess whether conditional release to community supervision or reimprisonment may explain the higher post-release mortality found among non-Hispanic whites. In the second part of the analysis, we estimate standardized mortality ratios (SMRs) by sex, age group, and race/Hispanic origin using as reference the U.S. general population. The data come from state prison releases from the Bureau of Justice Statistics' (BJS) National Corrections Reporting Program (NCRP). The NCRP records were linked to the Census Numident to identify deaths occurring within five years from prison release. We also linked NCRP records to previous decennial censuses and survey responses to obtain self-reported race and Hispanic origin if available. We found that non-Hispanic white former prisoners were more likely to die within five years after prison release and more likely to die in the initial weeks after release compared to racial minorities and Hispanics. Reimprisonment, age at release, and a history of multiple prison terms had a similar influence on the odds of dying across all race/Hispanic origin groups. Other factors, such as the type of release and the duration of the last term in prison, were associated with higher risks of mortality for some groups but not for others.
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Earnings Inequality and Immobility for Hispanics and Asians: An Examination of Variation Across Subgroups
September 2021
Working Paper Number:
CES-21-30
Our analysis provides the rst disaggregated examination of earnings inequality and immobility within the Hispanic ethnic group and the Asian race group in the U.S. over the period of 2005-2015. Our analysis differentiates between long-term immigrant and native-born Hispanics and Asians relative to recent immigrants to the U.S. (post 2005) and new labor market entrants. Our results show that for the Asian and Hispanic population aged 18-45, earnings inequality is constant or slightly decreasing for the long-term immigrant and native-born populations. However, including new labor market entrants and recent immigrants to the U.S. contributes significantly to the earnings inequality for these groups at both the aggregate and disaggregated race or ethnic group levels. These findings have important implications for the measurement of inequality for racial and ethnic groups that have higher proportions of new immigrants and new labor market entrants in the U.S.
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