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Hatred and Profits: Under the Hood of the Ku Klux Klan*

Quarterly Journal of Economics 2012 127(4), 1883-1925
Abstract In this article, we analyze the 1920s Ku Klux Klan, those who joined it, and its social and political impact by combining a wide range of archival data sources with data from the 1920 and 1930 U.S censuses. We find that individuals who joined the Klan in some cities were more educated and more likely to hold professional jobs than the typical American. Surprisingly, we find little evidence that the Klan had an effect on black or foreign-born residential mobility or vote totals. Rather than a terrorist organization, the 1920s Klan is best described as social organization with a very successful multilevel marketing structure fueled by an army of highly incentivized sales agents selling hatred, religious intolerance, and fraternity in a time and place where there was tremendous demand.

The Plight of Mixed-Race Adolescents

The Review of Economics and Statistics 2012 94(3), 621-634
Since 1970, the fraction of mixed-race black-white births has increased nearly ninefold. This paper describes basic facts about the behaviors and outcomes of black-white mixed-race individuals. Unsurprisingly, on a host of background and achievement characteristics, as well as adult outcomes, mixed-race individuals fall in between whites and blacks. When it comes to engaging in risky and antisocial adolescent behavior, however, mixed-race adolescents are stark outliers compared to both blacks and whites. We argue that these behavioral patterns are most consistent with a two-sector Roy model, in which mixed-race adolescents, not having a predetermined peer group, engage in more risky behaviors in order to be accepted.