Public Financing and Racial Disparities: Does a Rising Tide Always Lift All Boats?

• 成果类型: Article
• 署名作者: Qiu, Tian
• 署名单位: University of Alabama System; University of Alabama Tuscaloosa
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20220480
• 发表日期: 2025
• 关键词: BANK DEREGULATION; income; DISCRIMINATION; INEQUALITY; WEALTH; IMPACT

摘要

This paper studies the heterogeneous impact of local government spending across racial groups. An exogenous increase in spending results in significant improvement in White, but not Black or Hispanic, labor market outcomes such as employment rate, weekly hours worked, and labor income. These effects on adults translate into their children's academic performance. White students show significant improvement in test scores, but Black or Hispanic students do not. Consequently, the achievement racial gap widens following an increase in local government spending. These results highlight the possibility that an increase in local government spending could unexpectedly increase intergenerational racial disparity. (JEL H74, H75, I22, I26, J15, J22, J31)