Essays on applied economics

Abstract

This thesis includes three empirical essays which cover different topics. Before moving to the main chapters, I would like to briefly discuss the research question and main findings of each project. Chapter 1 Black-White Wage Convergence in the United States This paper explores whether there is a pattern of heterogeneous wage convergence between black and white workers in the Southern US relative to the Non-Southern US during the post-Civil Rights era. Heterogeneity in relation to the South may be plausibly associated with a range of determinants: the region’s historical experience of slavery, different observable factors, or changing political and social institutions. My evidence from US Census data for 1980, 1990 and 2000 indicates that a strong pattern of “black-black” and “black-white” wage convergence exists between Southern born and Non-Southern born individuals. This wage convergence pattern, particularly amongst black workers, is similar across Southern states associated with different historical intensities of slavery, but it is stronger and more persistent for the low wage groups in the South. In addition, the wage convergence is mainly from the low wage quartile groups. My assessment of the impact of institutional changes as a driver of wage convergence suggests that the changes associated with rising political competition from 1960 to 1980 contributed to rising black wages. Chapter 2 Hate Crime and Victory of Obama This paper examines whether Obama’s 2008 electoral victory affected hate crimes. Hate crime data from 2005 to 2012 indicate that anti-black and total hate crimes declined significantly in Blue States after Obama won the election, relative to Red States. The drop is even more significant in States that supported the Democratic presidential candidates in the 2004 and 2008 elections. Moreover, this decline is highly associated with the decreasing education gap between black people and white people. These findings suggest that Obama’s victory played a role in reducing the number of hate crimes in the US. Chapter 3 The Long-Run Labor Market Consequences of Being Born in A Bad Economy Recent studies have shown that an economic or environmental shock at an early stage of life can have a negative long-term impact on health status as well as educational and labour market outcomes. In this study, I examine whether being born during an economic recession affects later-life earnings. By utilising 2000 US Census data, I find that males born between 1965 and 1979 experienced a 1 percent of earning loss with every one unit increase in the unemployment rate at year of birth. The effect is similar in those with and without college education. Moreover, the effect is stronger in the low wage quartile groups. These findings suggest that the labour market consequences of being born in a recession are negative and persistent