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Evaluation Review, Vol. 1, No. 1, 159-172 (1977)
DOI: 10.1177/0193841X7700100107

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Racial Discrimination in Chicago's Storefront Banks

William Bridges

University of Illinois-Chicago Circle

Jerrold Oppenheim

Legal Assistance Foundation of Chicago

A multiple regression analysis of survey data was carried out to evaluate the extent and form of price differentials in Chicago currency exchanges. These institutions, which are partially regulated by the state, cash checks, write money orders, and remit utility payments in return for small service fees. The results showed that there were price differentials for obtaining financial services of small value (under $200), with higher prices being charged in Latmo and Black neighborhoods. The inclusion of interaction terms for ethnic composition, however, demonstrated that the form of the pricing function was relatively constant across neighborhoods.


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