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Title:The measurement of racial discrimination in pay between job categories: theory and test PDF Logo
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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