Full Citation

Title: Bank Deregulation and Racial Inequality in America

Citation Type: Journal Article

Publication Year: 2014

ISBN:

ISSN:

DOI: 10.1561/104.00000013

NSFID:

PMCID:

PMID:

Abstract: We use the cross-state, cross-time variation in bank deregulation across the U.S. states to assess how improvements in banking systems affected the labor market opportunities of black workers. Bank deregulation from the 1970s through the 1990s improved bank efficiency, lowered entry barriers facing nonfinancial firms, and intensified competition for labor throughout the economy. Consistent with Becker's (1957) theory of racial discrimination, we find that in economies where employers have sufficiently strong racial biases, deregulation-induced improvements in the banking system boosted black workers' relative wages by facilitating the entry of new firms and reducing the manifestation . . .

Url: http://www.nowpublishers.com/article/Details/CFR-013

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Authors: Levine, Ross; Rubinstein, Yona; Levkov, Alexey

Periodical (Full): Critical Finance Review

Issue: 1

Volume: 3

Pages: 1-48

Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure, Other, Race and Ethnicity

Countries: