The effects of the past are not dead and buried. They stay with us.
The pasts long shadow
Apr 13th 2015, 13:56 by C.R. | TELFORD
http://www.economist.com/blogs/free...story-0?fsrc=scn/tw_ec/the_past_s_long_shadow
.pdf here
The pasts long shadow
Apr 13th 2015, 13:56 by C.R. | TELFORD
HENRY FORD, the founder of the carmaker that still bears his name, declared in 1916 that History is more or less bunk. When asked to open a museum more than a decade later, he sought to clarify his comments. It is not politicians and generals who change the future, he said, but the lives of ordinary people such as farmers or engineers. Two new papers, presented at Britains Economic History Society's annual conference last month, suggest that the legacy of individuals personal struggles in America is more enduring than even Ford could have imagined. The first*, by Cornelius Christian of Oxford University, looks at the consequences of the lynching of black Americans between 1882 and 1930. Mr Christian found that this history of racial violence still echoes down the decades. He also found that the higher an areas lynching rate before 1930, the wider the income gap between blacks and whites remained in 2008-12, even when adjusted for factors such as the education and employment levels of a local area. A high rate of lynching widens this gap by as much as 15% in some cases. Another paper** presented at the conference, by Vellore Arthi, also of Oxford University, looked at the long-run impact of the Dust Bowla long period of drought in Americas central plains in the 1930s that involved a series of severe dust storms. Using census data Ms Arthi found that those who were born or were children during the disaster had a lower fertility rate than their peers from elsewhere in the country, were less likely to attend college and were more likely to suffer disability and poverty when they became older. As as other research has shown, some of these disadvantages, in turn, are likely to have affected the life chances of their children. In short, crimes that occurred a century ago and a drought that ended 75 years ago are still blighting lives today. * C. Christian, Lynchings, labour, and cotton in the US South. ** V. Arthi, The dust was long in settling: human capital and the lasting impact of the American Dust Bowl.
http://www.economist.com/blogs/free...story-0?fsrc=scn/tw_ec/the_past_s_long_shadow
Lynchings, Labour and Cotton in the US South
By Cornelius Christian
I show that cotton price shocks predict lynchings of African Amer-
icans in the US South from 1882 to 1930. Specically, a standard deviation decrease in the cotton price leads to a 0.095 to 0.16
standard deviation increase in lynchings, within a cotton-producing
county. Lynchings also predict more black out-migration from 1920
to 1930. Using a simple model, I show that this is consistent
with lynchings having labour market eects that benetted whites:
lynchings cause blacks to migrate away, lowering labour supply and
increasing wages for white labourers. I run complier tests to show
the mediating eects of railroads, the black-white farm worker ra-
tio, and slavery. I then turn to the long-term eects of lynchings.
I show that Mississippi counties with more violence during a 1964
Civil Rights campaign also had more lynchings during the earlier
period. Finally, present-day outcomes show that lynchings predict
higher black-white worker, family, and household income gaps; a
standard deviation rise in past lynchings predicts a 0.08 to 0.15
standard deviation increase in black-white income gaps. These
present-day results are robust to historical controls, to the use of
California lynchings as a falsication, to the use of white-on-white
lynchings as a placebo, and to the use of 1879 cotton acreage as an
instrument; they also survive tests using Altonji, Elder, and Taber
(2005) statistics.
.pdf here