Document Type
Article
Publication Date
3-8-2026
Department 1
Economics
Abstract
This paper examines the empirical relationship between monetary policy and racial and ethnic labor market outcomes. Estimating structural vector autoregressions with external instruments, we find a much larger response of labor market outcome gaps than has been documented previously. These differential outcomes persist for Black workers of both sexes even within the same age group and level of educational attainment, while Hispanic and white responses are similar within such groupings. Estimates based on individual-level data show that distributional differences in demographic characteristics, as well as occupation and industry of employment, account for a large portion of the Hispanic-white unemployment gap response to economic downturns. Most of the response of the Black-white unemployment gap, however, is not explained by differences in demographic observables, occupation, or industry.
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.
DOI
10.1007/s10888-025-09719-z
ISBN/ISSN
1573-8701
Version
Version of Record
Recommended Citation
Petkov, Tsvetomir, and Charles L. Weise. "Monetary policy and racial differentials in labor market outcomes." The Journal of Economic Inequality (2026): 1-28. https://doi.org/10.1007/s10888-025-09719-z.
