POLITICAL ECONOMY: Can Social Movements Reduce Racial Disparities? Evidence from Medical Crowdfunding During the Black Lives Matter; Professor Kaixin Liu (Jinan University)

Abstract

Using high-frequency donation records from a major medical crowdfunding platform and careful difference-in-difference analysis, we demonstrate that the 2020 BLM surge decreased the fundraising gap between Black and non-Black beneficiaries by around 50%. We show that the effect is not a notion of ethnic nepotism, nor protesting act, but a piqued sentiment of empathy and awareness of racism. The effect is delivered across wide geographics through the information enchancement role of social media. However, the spillover is not targeting to the regions with previously long-standing racial discrimination, suggesting the existence of echo chambers.

Click here to view paper.