Revisiting the Link Between Economic Distress, Race, and Domestic Violence

Male unemployment may decrease the incidence of domestic violence, due to loss of economic power in the relationship, or increase the incidence of domestic violence, due to emotional outbursts fueled by increased stress. We hypothesize that Black men may face a greater loss of expected future earnings after an unemployment shock due to a more unfavorable labor market relative to White men. Consequently, we would expect that Black men would, on net, exhibit a greater reduction (or a smaller increase) in incidences of domestic violence following an employment shock. This study uses mass layoff events reported by the Bureau of Labor Statistics (BLS) at the county level (N = 3,377) for the years 2003-2008. Mass layoff events occur when a firm lays off at least 50 workers and are uncorrelated with individual-level characteristics (N = 28,939 events, affecting N = 5,337,481 individuals). Domestic violence data are taken from the National Archive of Criminal Justice and defined as occurring when an accused perpetrator is charged, but not necessarily convicted. We use a multivariate regression model to estimate how differences in the change in reported incidences of domestic violence by race correlate with changes in mass layoffs by race. We control for the poverty rate, real per capita income, percent Black, percent women, and percent of females laid off. The standard errors are clustered at the county level and include county and time dummies to account for regional and time specific trends. We observe that an increase in the number of Blacks subject to a mass layoff event do exert a negative associated influence on domestic violence while layoffs of White men exert a positive influence. Our results shed light on how the influence of economic uncertainty on incidences of domestic violence has been found to be positive in some previous research but negative in other research.