The theoretical model predicted that hateful activity decreases with increased in: (1) the market wage rate, (2) the value of time, (3) age, and (4) law enforcement activity. Results of the empirical analysis provided convincing support for the model. Hate crimes were positively related to the unemployment rate, the percentage of the population between ages 15 and 19 years, the extent of a State’s liberal ideology, and the educational level. Hate crimes were negatively related to the market wage rate. Law enforcement efforts and religious belief did not have a statistically significant impact on hateful activity. In addition, three other factors thought to be causes of hateful activity were not statistically significant determinants of hateful activity. These other factors were urbanization, low occupational status, and downward social mobility. Findings strongly supported the rational choice approach to behavior as it applies to hateful activity. Table, author biographies, and 32 references (Author abstract modified)