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Black Americans face higher cyclical unemployment risk than white Americans: job-finding rates during recessions are lower and the risk of becoming long-term unemployed is higher. Differences in unemployment risk across Black and white Americans imply that Black Americans optimally invest less...
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and perceived discrimination, with a focus on racial-discrimination. We show that sensing racial discrimination has a much … bigger association with shaping portfolio decisions than any other type of discrimination. Perceived racial discrimination … explains not only the choice to opt-in risky financial assets, but also the amount of assets held. Specifically, racial …
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