Wednesday, July 12, 2023

We find that, as Asian students arrive, white student enrollment declines in higher-income suburbs; fears of academic competition may play a role

White Flight from Asian Immigration: Evidence from California Public Schools. Leah Platt Boustan, Christine Cai & Tammy Tseng. NBER Working Paper, Jul 2023. https://www.nber.org/papers/w31434


Asian Americans are the fastest-growing racial group in the US but we know little about how Asian immigration has affected cities, neighborhoods and schools. This paper studies white flight from Asian arrivals in high-socioeconomic-status Californian school districts from 2000-2016 using initial settlement patterns and national immigrant flows to instrument for entry. We find that, as Asian students arrive, white student enrollment declines in higher-income suburbs. These patterns cannot be fully explained by racial animus, housing prices, or correlations with Black/Hispanic arrivals. Parental fears of academic competition may play a role.


Traditional beliefs: Commonly-used, but typically prohibitively expensive rituals, partially correct the beliefs about the risk of theft for sellers who report believing in the ritual’s efficacy, which allows for more inventory and larger sales

On the Importance of African Traditional Religion for Economic Behavior. Lewis Dunia Butinda, Aimable Amani Lameke, Nathan Nunn, Max Posch & Raúl Sánchez de la Sierra. NBER Working Paper 31430, July 2023. DOI 10.3386/w31430


Within the field of economics, despite being widespread, African traditional religions tend to be perceived as unimportant and ignored when studying economic decision-making. This study tests whether this presumption is correct. Using daily data on business decisions and performance of beer sellers in the eastern Democratic Republic of the Congo, we study the importance of traditional religious beliefs for economic behavior and outcomes. Beer sellers perceive the risk of theft in their shops to be higher than it actually is, causing them to hold lower inventories, more frequent stock-outs, and reduced profits. We facilitate randomly-timed access to commonly-used, but typically prohibitively expensive rituals, which reduce the perceived risk of theft. We find that the rituals partially correct the beliefs about the risk of theft for sellers who report believing in the ritual’s efficacy. These sellers purchase more inventory, experience fewer stock-outs, and have larger sales, revenues, and profits. To distinguish the belief in the efficacy of the ritual from other incidental effects of participation, we analyze these outcomes for sellers who do not believe in the ritual. For these individuals, we find none of the observed effects. The findings provide evidence of the importance of African traditional religions, demonstrating that they can influence behavior and outcomes that are important for economic development.