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This research aims to investigate how monetary policy affects racial and ethnic labor market outcomes.

Monetary policy and racial differentials in labor market outcomes

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This research aims to investigate how monetary policy affects racial and ethnic labor market outcomes.
Utilized structural vector autoregressions with external instruments to estimate relationships.
Analyzed individual-level data regarding demographic factors, occupations, and industries.
Found larger labor market outcome gaps than previously documented.
Identified persistent gaps for Black workers not fully explained by demographic differences.
Highlighted significant differences in responses between Hispanic and white workers during economic downturns.

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Analysis reveals monetary policy influences racial labor gaps, suggesting structural improvements in occupations are needed.

Petkov et al. (2026) studied this question.

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