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http://hdl.handle.net/10419/35668
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| Title: | | The measurement of racial discrimination in pay between job categories: theory and test  |
| Authors: | | Bodvarsson, Örn B. Sessions, John G. |
| Issue Date: | | 2008 |
| Series/Report no.: | | IZA discussion papers 3748 |
| Abstract: | | The traditional model of taste discrimination in labor markets presumes perfect substitution, making it unsuitable for the measurement of discrimination across job assignments. We extend the model to explain cross-assignment discrimination and test it on data from Major League Baseball. A competitive firm with a Generalized Leontief production function fills each job assignment with whites and nonwhites in an environment of customer prejudice. According to the model, cross-assignment discrimination depends upon racial productivity differences, the productivity x prejudice interaction, technology, relative labor supply and racial integration. We find strong evidence of ceteris paribus racial salary differences between hitters and pitchers. |
| Subjects: | | Wages discrimination imperfect substitutability integration |
| JEL: | | J7 |
| Persistent Identifier of the first edition: | | urn:nbn:de:101:1-20081114118 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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