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Macroeconomic shocks and racial labour market inequality

Year: 2026

Type: article

Abstract: How do business cycle disturbances and policy affect racial labour market inequality? We estimate the effects of six macroeconomic shocks – monetary, government spending, tax, financial, technology, and oil supply – on the US Black-white unemployment rate gap. All shocks have significantly larger effects on Black unemployment. Contractionary shocks widen the gap. Government spending has particularly strong effects.

Source: Applied Economics Letters

DOI: 10.1080/13504851.2026.2696046

Authors: Alexander Ziegenbein, Dijana Zejcirovic

Institution: Vienna University of Economics and Business

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Reduced inequalities, Decent work and economic growth

Open Access status: hybrid

Funder: Oesterreichische Nationalbank