Trade Liberalization and Racial Animus

Published in Contemporary Economic Policy, 2021

Download paper here

We examine whether a change in U.S. policy to normalize trade relations with China, which fueled a surge in import competition that led to higher levels of unemployment, affected the presence of hate crimes. Using a difference-in-differences model and an event-study framework, we find that areas most exposed to import competition experienced an increase in the number of anti-Black hate crimes. We also find a qualitatively similar effect on the number of active hate groups in response to import competition.

Ortega, Alberto, Ema Di Fruscia, and Bryn Louise. “Trade liberalization and racial animus.” Contemporary Economic Policy 39, no. 1 (2021): 194-204.