Public Financing and Racial Disparities: Does a Rising Tide Always Lift All Boats?
研究发现，地方政府支出增加改善了白人的就业和收入，但对黑人和西班牙裔无显著影响，进而扩大了种族间子女学业成绩差距，可能加剧代际种族不平等。
This paper studies the heterogeneous impact of local government spending across racial groups. An exogenous increase in spending results in significant improvement in White, but not Black or Hispanic, labor market outcomes such as employment rate, weekly hours worked, and labor income. These effects on adults translate into their children’s academic performance. White students show significant improvement in test scores, but Black or Hispanic students do not. Consequently, the achievement racial gap widens following an increase in local government spending. These results highlight the possibility that an increase in local government spending could unexpectedly increase intergenerational racial disparity.