Mario Small, Grafstein Family Professor of Sociology, Harvard University, presents, “Financial institutions, neighborhoods, and racial inequality”
Research has made clear that racial inequality is affected by neighborhood conditions. One important condition is the accessibility of financial establishments. We examine how living in minority neighborhoods affects ease of access to conventional banks vs. to alternative financial institutions (AFIs) such as check cashers and payday lenders. Based on more than 6 million queries, we compute the difference in the time required to walk, drive, or take public transit to the nearest bank vs. the nearest AFI from the middle of every block in each of 19 of the nation’s largest cities. Results suggest that race is strikingly more important than class: even after numerous economic, demographic, and structural conditions are accounted for, the AFI is more often closer than the bank in well-off minority neighborhoods than in poor white ones. I discuss implications.
Zoom Seminar. Please contact email@example.com to obtain Seminar Link.