Summary

Researchers examined how natural disasters and federal disaster aid impact wealth inequality between White and Black Americans. The authors combined county-level data on property damages from natural hazards with household survey data from the Panel Study of Income Dynamics between 1999 and 2013. Their analysis shows that as natural disaster damages increase in a county, White residents tend to accumulate more wealth, while Black residents tend to lose wealth. Additionally, they found that higher amounts of Federal Emergency Management Agency (FEMA) aid to counties exacerbated rather than reduced this racial wealth gap, holding disaster costs constant.


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