Working Papers

Many U.S. metropolitan areas are fragmented into dozens of local political jurisdictions, which can exacerbate inequality in access to public services. Using a shift-share instrument, we estimate that 1940s Black migration to Northern cities caused the incorporation of over 800 new municipalities and a 14% slower consolidation of school districts in destination areas. Newly incorporated municipalities were predominately White, primarily use single-family residential zoning, and are more likely to have an exclusive school district, suggesting that preference for demographic homogeneity was a driver of fragmentation. Schools in cities with high jurisdictional fragmentation continue to be more racially segregated today.

We study the long-term effect of the Great Recession on federal student loan borrowing and repayment. Using detailed longitudinal data on federal student loan borrowers, we compare labor markets that faced varying degrees of unemployment severity during the economic downturn. On average, a one percentage point increase in Great Recession unemployment rates caused a 7% rise in total outstanding debt and 6% percent rise in defaulted borrowers. Across institutional sectors, the Great Recession accounted on average for between 19-32% of the total increase in undergraduate student debt and 10-25% of the total increase in defaults. Borrowers who were students at the onset of the recession saw the largest effects on accrued debt, due to delayed graduation and lengthened enrollment spells.