Economic WARNings: The Impact of Negative Economic News on Racial Animus

Abstract

Racially charged rhetoric often surrounds layoff events, with specific minorities often blamed for the loss of “American jobs.” We examine whether information about impending mass layoffs causes racial animus. Our data consist of information on mass layoff notices linked to Google Search Trends and FBI Hate Crime Statistics. We compare outcomes across areas that vary in the timing of news of impending layoffs. Results indicate an increase in both racist searches (1.5 percent) and hate crimes (23 percent) following layoff notices.