The White/Black Educational Gap, Stalled Progress, and the Long Term Consequences of the Emergence of Crack Cocaine Markets

64 Pages Posted: 6 Oct 2012 Last revised: 19 May 2023

See all articles by William N. Evans

William N. Evans

University of Notre Dame; National Bureau of Economic Research (NBER)

Craig L. Garthwaite

Northwestern University - Department of Management & Strategy

Timothy Moore

George Washington University

Date Written: October 2012

Abstract

We propose the rise of crack cocaine markets as an explanation for the end to the convergence in black-white educational outcomes beginning in the mid-1980s. After constructing a measure to date the arrival of crack markets in cities and states, we show large increases in murder and incarceration rates after these dates. Black high school graduation rates also decline, and we estimate that crack markets accounts for between 40 and 73 percent of the fall in black male high school graduation rates. We argue that the primary mechanism is reduced educational investments in response to decreased returns to schooling.

Suggested Citation

Evans, William N. and Garthwaite, Craig L. and Moore, Timothy, The White/Black Educational Gap, Stalled Progress, and the Long Term Consequences of the Emergence of Crack Cocaine Markets (October 2012). NBER Working Paper No. w18437, Available at SSRN: https://ssrn.com/abstract=2157881

William N. Evans (Contact Author)

University of Notre Dame ( email )

913 Flanner Hall
Notre Dame, IN 46530
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574-631-7039 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
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Craig L. Garthwaite

Northwestern University - Department of Management & Strategy ( email )

Kellogg School of Management
2001 Sheridan Road
Evanston, IL 60208
United States

Timothy Moore

George Washington University ( email )

2121 I Street NW
Washington, DC 20052
United States

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