The Effect of Wealth on Descendants of the Enslaved

Grant description:

Due to federal American Indian policy, thousands of formerly enslaved people, or “freedmen,” and their descendants became landowners in present-day Oklahoma during the early 1900s. Over the following three decades, Oklahoma experienced an unexpected and unprecedented oil boom, from which a small fraction of these landholders profited. This research focuses on a specific subset of these landholders—Creek Freedmen—and estimates the causal effects of oil discoveries on their land on their socioeconomic outcomes and those of their descendants. In preliminary work, the author finds that oil discovery has effects in the very short term: Landholders who found oil at all appeared to be more geographically mobile, have higher-status occupations, and invest more in their children’s human capital. This research is poised to generate insight into how large exogenous influxes of resources into Black households may affect wealth and well-being in the near- and long-term. The focus on descendants of enslaved people links the historical work to contemporary discussions about reparations and racial wealth inequality.