This Saturday, the nation recognizes Juneteenth, which marks the day a Major General of the Union Army arrived in Galveston, Texas to enforce the Emancipation Proclamation, and free the last enslaved Black people in Texas from bondage. 1/
The day has evolved into a celebration of emancipation, and while the country acknowledges the progress that has been made, it is imperative to not lose sight of the fact that we still have much work to do to address the vestiges of slavery and historic discrimination 2/
Indeed, policies and practices exist today that are seemingly non-discriminatory on their face but still negatively affect many families of color, especially Black families. Many of these policies and practices have long-term impacts that must be addressed. 3/
One area that is important for economic well-being and wealth accumulation is housing. Families who can purchase their own home in the neighborhood of their choice at a fair price and see the value of their home grow over time do better economically in the long run 4/
But numerous policies have systemically discriminated against Black families who wish to pursue that path. A new blog from CEA focuses on one of these policies: exclusionary zoning laws, which have played a role in causing racial disparities in the housing market. 5/
Research has connected exclusionary zoning to racial segregation, creating greater disparities in measurable outcomes. 6/
Many lower-income, predominantly minority neighborhoods in cities have become “heat islands”—experiencing significantly higher temperatures than other neighborhoods in the same metropolitan area because of factors such as fewer trees and more concrete buildings and parking lots7/
Research shows that elevated temperatures negatively impact short-run cognitive performance, working memory, and stamina, such that an increase in the number of hot school days decreases the educational attainment of students. 8/
Restrictions in housing supply also limit labor mobility, because workers cannot afford to move to higher productivity cities that have high housing prices. This leads workers to remain in lower productivity places. 9/
One study finds that this misallocation of labor has led to a significant decrease in the U.S. economic growth rate since the 1960s; another study finds that this misallocation could cost up to 2 percent of GDP. 10/
Finally, exclusionary zoning contributes to the racial wealth gap. 11/
If Black families are excluded from higher priced neighborhoods or if neighborhoods where Black families live are zoned into being less valuable, the homes purchased by Black families will not be worth as much over time as those of white families. 12/
In the long run, this diminishes wealth not only for the generation purchasing the home, but for descendants who receive a lesser inheritance. Indeed, housing likely explains more than 30 percent of the Black-white racial wealth gap. 13/
The full blogpost is here: whitehouse.gov/cea/blog/2021/…
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