Hate Fuel: On the Relationship between Local Government Policy and Hate Group Activity

Abstract

Though often joined for ideological reasons, hate groups provide services for their members. Many of these services are substitutes for government services although others may be complements. Therefore, increases in the quality or quantity of government-provided substitutes may lower the marginal benefit of participating in an active hate group. Conversely, government supplied complements may serve to sustain active hate groups by reducing the negative effect signaling membership may have on labor market opportunities. The fixed effect logistic panel estimation results from 2002 to 2007 suggest that lowering the poverty rate reduces the likelihood that an active hate groups is present. However, using welfare as a means to ease the plight of those less fortunate is associated with an increase in probability a hate group is active within a county.

Keywords: hate groups, club theory, public goods

JEL Classification: R11, J1, D71