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Why Are Minorities Disproportionately Concentrated in Low-Quality Nursing Homes?

Date: Thursday, Oct 19, 2023, 16:30 ~ 17:45
Speaker: Alden Cheng (NBER postdoc)
Location: 우석경제관(223동) 504호
◈ 주   제 : Why Are Minorities Disproportionately Concentrated in Low-Quality Nursing Homes?

◈ 발표자 : Alden Cheng (NBER Postdoc)

◈ 일   시 : 2023년 10월 19일 목요일 16:30 ~ 17:45

◈ 장   소 : 우석경제관(223동) 504호

◈ 주   관 : 경제학부, 경제연구소 한국경제혁신센터, SSK, BK21

Abstract: This paper studies the underlying mechanisms giving rise to high levels of racial segregation and disparities across nursing homes in the US. Descriptively, I find that while residential segregation is an important explanation for racial segregation across nursing homes, it struggles to explain disparities. I provide reduced form evidence for several other explanations for disparities: nursing homes seem to discriminate against minorities in their admission practices, individuals tend to choose nursing homes with a higher share of residents of their own race, and minorities seem less sensitive to a high-profile information intervention in the form of the introduction of the star ratings system. To disentangle and quantify the effects of these proposed mechanisms, I then estimate a structural model. Counterfactual simulations confirm that residential segregation is indeed the main explanation for high levels of segregation, yet it explains little of disparities. By contrast, information frictions is the main driving force behind disparities but is largely orthogonal to segregation. Discrimination by nursing homes and in-group preferences play smaller roles.
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