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Housing, justice, jobs, and the flat Phillips Curve: Racial discrimination and a possible role for the Fed

Summary:
Over at WaPo. One attribute of the post is the link to Richard Rothstein’s important new book documenting the “unhidden policies” responsible for racial residential segregation. The rigor of his research creates a bullet proof case for a) the laws, covenants, and zoning practices that kept African-Americans in high-poverty areas, and b) the difficulty unwinding those impacts today. I predict this book is going to be a big deal. At least I hope so. Here’s the figure showing the constant ratio where black unemployment rates are 2x those of whites. This may be one of the most consistent relationship in economics, which is why I argue for lower overall unemployment in the piece, to tap this powerful elasticity to disproportionately push down the black rate. Source: BLS Share the post

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Over at WaPo. One attribute of the post is the link to Richard Rothstein’s important new book documenting the “unhidden policies” responsible for racial residential segregation. The rigor of his research creates a bullet proof case for a) the laws, covenants, and zoning practices that kept African-Americans in high-poverty areas, and b) the difficulty unwinding those impacts today. I predict this book is going to be a big deal. At least I hope so.

Here’s the figure showing the constant ratio where black unemployment rates are 2x those of whites. This may be one of the most consistent relationship in economics, which is why I argue for lower overall unemployment in the piece, to tap this powerful elasticity to disproportionately push down the black rate.

Housing, justice, jobs, and the flat Phillips Curve: Racial discrimination and a possible role for the Fed

Source: BLS

Jared Bernstein
Jared Bernstein joined the Center on Budget and Policy Priorities in May 2011 as a Senior Fellow. From 2009 to 2011, Bernstein was the Chief Economist and Economic Adviser to Vice President Joe Biden, Executive Director of the White House Task Force on the Middle Class, and a member of President Obama’s economic team. Prior to joining the Obama administration, Bernstein was a senior economist and the director of the Living Standards Program at the Economic Policy Institute, and between 1995 and 1996, he held the post of Deputy Chief Economist at the U.S. Department of Labor.

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