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Discrimination, Segregation, Integration, and Expropriation

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  • Geoffrey Fain Williams

Abstract

I look at simple models of segregation and integration in a regional economy using a standard Cobb-Douglas production function and show that White capital does better in integration and White labor does better in segregation. I suggest that White capital and labor can resolve this difference in interests by integrating Black labor and expropriating some of the wages of these Black workers. I then introduce the third production factor of human capital, where the ethnic groups have different access to resources for human capital development. I show that this can lead to outcomes very similar to the expropriation model. Both the expropriation and limited human capital models appear to match available data for some US labor markets in the 1865−1965 period.

Suggested Citation

  • Geoffrey Fain Williams, 2022. "Discrimination, Segregation, Integration, and Expropriation," AEA Papers and Proceedings, American Economic Association, vol. 112, pages 239-243, May.
    • Handle: RePEc:aea:apandp:v:112:y:2022:p:239-43
    DOI: 10.1257/pandp.20221102
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    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • N31 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: Pre-1913
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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