Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/35668
Authors: 
Bodvarsson, Örn B.
Sessions, John G.
Year of Publication: 
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: 
Document Type: 
Working Paper

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