Lynching and economic opportunities: Evidence from the US South

Abstract

This paper examines the impact of historical lynching on the economic opportunities of Black individuals today. Our results indicate that past lynchings have an adverse effect on the current economic opportunities of Black people, likely arising from persistent racial prejudice dating back to the early 20th century. We emphasize the importance of rapid urbanization, industrialization, and population mixing in the US South post-1880, which led to heightened competition among racial groups for economic, social, and political prominence, ultimately resulting in a surge of lynchings. Our findings survive a series of robustness checks.