Since the 1990s, developers in Florida who want to build on wetlands have been required to buy offset credits from "wetland mitigation banks," private restoration projects that convert degraded land, often former pasture, back into functioning wetland elsewhere in the same region. Like other environmental offset markets, the program has proved controversial.

In a paper in the American Economic Review, authors Daniel Aronoff and Will Rafey found that wetland offsets generated roughly $2.4 billion in private gains from trade but also a significant increase in overall flood damage because wetlands were moved away from places where they protected existing homes.

Rafey recently spoke with Tyler Smith about what the results mean for the design of environmental markets and wetland regulations.

The place where a child grows up in America shapes their economic future to a significant degree. One long-suspected explanation is racial segregation, but proving whether segregation actually causes worse outcomes—rather than just correlating with them—has been challenging for economists.

In a paper in the American Economic Journal: Applied Economics, authors Eric Chyn, Kareem Haggag, and Bryan A. Stuart provide evidence that racial segregation shapes the long-run economic prospects of American children.

Using the placement of railroad tracks in the 19th century, they found that a one standard deviation increase in segregation—roughly the gap between Minneapolis and Philadelphia—cost a Black child from a poor family about $4,200 a year in income as an adult. While lower-income Black children were hit the hardest, segregation also hurt higher-income Black children and lower-income White children.

Chyn recently spoke with Tyler Smith about why segregation hurts low-income kids in particular and what his findings imply for policymakers.

Asian Americans are the fastest-growing racial group in the United States and are on track to become the largest immigrant group by 2050. Yet, researchers have devoted much less attention to this population than to other immigrant groups.

In a paper in the Journal of Economic Perspectives, author Hannah M. Postel helps to fill that gap. She traces Asian immigration to the United States across three policy eras—1882–1943, 1943–1965, 1965–present—and explores how they affected the characteristics of those admitted, where they settled, and what work they were allowed to do.

Postel recently spoke with Tyler Smith about the origins of the US federal immigration system, the history of Asian immigration, and how current policy might shape immigration going forward.