Panel Paper: The White/Black Educational Gap, Stalled Progress, and the Long-Term Consequences of the Emergence of Crack Cocaine Markets

Thursday, November 7, 2013 : 10:05 AM
West End Ballroom E (Washington Marriott)

*Names in bold indicate Presenter

Timothy Moore, George Washington University, William N. Evans, University of Notre Dame and Craig Garthwaite, Northwestern University
We propose the rise of crack cocaine markets as an explanation for the end to the convergence in black-white educational outcomes beginning in the mid-1980s. After constructing a measure to date the arrival of crack markets in cities and states, we show large increases in murder and incarceration rates after these dates. Black high school graduation rates also decline, and we estimate that crack markets accounts for between 40 and 73 percent of the fall in black male high school graduation rates. We argue that the primary mechanism is reduced educational investments in response to decreased returns to schooling.

NOTE (not abstract): This paper was accepted for last year's conference and the presenter had a family emergency and was unable to present.