Working Paper: NBER ID: w25192
Authors: Brian Beach; Daniel B. Jones; Tate Twinam; Randall Walsh
Abstract: Does minority representation in a legislative body differentially impact outcomes for minorities? To examine this question, we study close elections for California city council seats between white and nonwhite candidates. We find that nonwhite candidates generate differential gains in housing prices in majority nonwhite neighborhoods. This result, which is not explained by correlations between candidate race and political affiliation or neighborhood racial composition and income, suggests that increased representation can reduce racial disparities. Our results strengthen with increased city-level segregation and councilmember pivotality. Regarding mechanisms, we observe changes in business patterns and policing behavior, which may help explain our results.
Keywords: minority representation; local government; housing prices; regression discontinuity
JEL Codes: D72; H7; J15; R3
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Election of nonwhite candidate (K16) | Increase in housing prices in majority nonwhite neighborhoods (R31) |
| Election of nonwhite candidate (K16) | Spatial reallocation of city services and investments (R23) |
| Spatial reallocation of city services and investments (R23) | Increase in housing prices in majority nonwhite neighborhoods (R31) |
| Election of nonwhite candidate (K16) | Reduction of preexisting gaps in housing prices across racial lines (R28) |
| Changes in business patterns (L16) | Increase in housing prices in majority nonwhite neighborhoods (R31) |
| Policing behavior (K42) | Increase in housing prices in majority nonwhite neighborhoods (R31) |