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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.
imperfect substitutability
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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