Self-Reporting Race in Small Business Loans: A Game-Theoretic Analysis of Evidence from PPP Loans in Durham, NC

García, Raffi E.; Darity, William A.

doi:10.1257/pandp.20221031

Cited by 3 publications

(1 citation statement)

References 3 publications

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“…We also do not find that CZs with a higher proportion of non-White residents received more of the first-round funds. Combined with the results from the full set of PPP loans, this finding suggests that small businesses in regions with a higher proportion of non-White people had to wait longer to receive PPP funds, a finding consistent with the results in Fairlie and Fossen (2021), Atkins et al (2022), and Garcia and Darity (2022).…”

Section: Resultssupporting

confidence: 77%

Banking Deserts and the Paycheck Protection Program

Deming

Weiler

2023

Economic Development Quarterly

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The Paycheck Protection Program was a highly unusual policy measure enacted to provide bridge capital to support small businesses coping with the dramatic downturn in demand due to the COVID-19 pandemic. By design, the program effectively required potential applicants to work through the bank with whom they had a relationship. Yet large swathes of the country are effectively banking deserts, which dramatically steepen the gradient for those regions’ businesses seeking Paycheck Protection Program support. This paper tests the proposition that the exogenous distribution of banks effectively discriminated against those regions where banking services were limited, while also looking at whether loans were distributed to those areas with less dense employment opportunities and higher concentrations of small businesses. The authors find that areas with fewer banking services and lower employment opportunities were systematically disadvantaged in the Paycheck Protection Program distribution, while there were no significant flows to areas with higher rates of small businesses.

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Section: Resultssupporting

confidence: 77%

Banking Deserts and the Paycheck Protection Program

Deming

Weiler

2023

Economic Development Quarterly

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Racial Disparities in Family Income, Assets, and Liabilities: A Century After the 1921 Tulsa Massacre

Darity,

García,

Russell

et al. 2023

J Fam Econ Iss

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This paper examines the financial health of racial-ethnic groups in Tulsa, Oklahoma, nearly a century after the 1921 Tulsa Massacre. We use data from the Tulsa National Asset Scorecard for Communities of Color (NASCC) survey to assess the financial health of two demographic groups that were historically the victims of racial violence - Native Americans and Black Americans. Specifically, we investigate financial outcomes a century after these groups made significant economic gains during the Tulsa oil boom in the early 1900 s and were subsequently victimized by racial violence. We find that Black households have statistically significantly less wealth and income than Whites in Tulsa. Our decomposition analysis shows household demographic differences between Blacks and Whites largely do not explain these wealth and income gaps, suggestive of historical discrimination. While in the case of the Native American tribes and Whites, the findings generally show no statistical significance. Compared to other NASCC-surveyed cities that did not experience destruction to the level of the Tulsa Massacre, the Black-White wealth and income gaps and the unexplained portion of the decompositions are the largest in Tulsa. Our results provisionally suggest that past exposure to racial violence can have long-term effects on the economic outcomes of the affected groups decades later.

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(Incorrect) Perceived Returns and Strategic Behavior among Talented Low-Income College Graduates

Agüero

Galarza

Yamada

2023

AEA Papers and Proceedings

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Job applicants use resumes to send signals to potential employers. Applicants are free to select the items that go in their resumes and are expected to include signals they perceive will help them achieve their goals and avoid those that they anticipate could hurt them. We show that 92 percent of beneficiaries of a highly selective scholarship for poor and talented students avoid listing this award when applying for jobs. This is consistent with beneficiaries perceiving a negative labor market return from sending that signal. A correspondence study shows instead that listing the scholarship increases callback rates by 20 percent.

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Self-Reporting Race in Small Business Loans: A Game-Theoretic Analysis of Evidence from PPP Loans in Durham, NC

Cited by 3 publications

References 3 publications

Banking Deserts and the Paycheck Protection Program

Banking Deserts and the Paycheck Protection Program

Racial Disparities in Family Income, Assets, and Liabilities: A Century After the 1921 Tulsa Massacre

(Incorrect) Perceived Returns and Strategic Behavior among Talented Low-Income College Graduates

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