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Bank deregulation and racial inequality in America

Levine, Ross and Levkov, Alexey and Rubinstein, Yona (2013) Bank deregulation and racial inequality in America. Critical Finance Review, 3 (1). pp. 1-48. ISSN 2164-5744

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Abstract

We use the cross-state, cross-time variation in bank deregulation across the U.S. states to assess how improvements in banking systems a§ected the labor market opportunities of black workers. Bank deregulation from the 1970s through the 1990s improved bank e¢ ciency, lowered entry barriers facing nonÖnancial Örms, and intensiÖed competition for labor throughout the economy. Consistent with Beckerís (1957) seminal theory of racial iscrimination, we Önd that deregulation-induced improvements in the banking system boosted blacksírelative wages by facilitating the entry of new Örms and reducing the manifestation of racial prejudices in labor markets.

Item Type: Article
Official URL: http://www.nowpublishers.com/journals/Critical%20F...
Additional Information: © 2013 The Authors
Subjects: H Social Sciences > HG Finance
Sets: Departments > Management
Collections > Economists Online
Collections > United States Collection
Identification Number: 10.1561/104.00000013
Date Deposited: 18 Mar 2014 09:15
Last Modified: 05 Oct 2016 13:47
URI: http://eprints.lse.ac.uk/id/eprint/51625

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