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Evidence on Discrimination in Consumer Markets

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  • John Yinger
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    Abstract

    Economists have contributed to the measurement of racial and ethnic discrimination in consumption and to the identification of its causes, especially in housing markets and car sales. To test the hypothesis that discrimination exists, economists have turned to regression analysis and to audits, a matched-pair survey technique. Economists also have developed audit-based measures of the incidence and severity of discrimination. Audit studies find continuing high levels of discrimination against minorities in the marketing of available housing and in car prices. Audit studies also find that discrimination can be caused both by economic agents' prejudice and by their search for profits.

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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.12.2.23
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    Bibliographic Info

    Article provided by American Economic Association in its journal Journal of Economic Perspectives.

    Volume (Year): 12 (1998)
    Issue (Month): 2 (Spring)
    Pages: 23-40

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    Handle: RePEc:aea:jecper:v:12:y:1998:i:2:p:23-40

    Note: DOI: 10.1257/jep.12.2.23
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    1. Kenney, Genevieve M & Wissoker, Douglas A, 1994. "An Analysis of the Correlates of Discrimination Facing Young Hispanic Job-Seekers," American Economic Review, American Economic Association, vol. 84(3), pages 674-83, June.
    2. Ayres, Ian & Siegelman, Peter, 1995. "Race and Gender Discrimination in Bargaining for a New Car," American Economic Review, American Economic Association, vol. 85(3), pages 304-21, June.
    3. Goldberg, Pinelopi Koujianou, 1996. "Dealer Price Discrimination in New Car Purchases: Evidence from the Consumer Expenditure Survey," Journal of Political Economy, University of Chicago Press, vol. 104(3), pages 622-54, June.
    4. Graddy, K., 1993. "Testing for Imperfect Competition at the Fulton Fish Market," Papers 137, Princeton, Department of Economics - Financial Research Center.
    5. Turner, Margery Austin & Mikelsons, Maris, 1992. "Patterns of racial steering in four metropolitan areas," Journal of Housing Economics, Elsevier, vol. 2(3), pages 199-234, September.
    6. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-61, September.
    7. Roychoudhury, Canopy & Goodman, Allen C., 1992. "An ordered probit model for estimating racial discrimination through fair housing audits," Journal of Housing Economics, Elsevier, vol. 2(4), pages 358-373, December.
    8. Page Marianne, 1995. "Racial and Ethnic Discrimination in Urban Housing Markets: Evidence from a Recent Audit Study," Journal of Urban Economics, Elsevier, vol. 38(2), pages 183-206, September.
    9. Newburger, Harriet B., 1989. "Discrimination by a profit-maximizing real estate broker in response to white prejudice," Journal of Urban Economics, Elsevier, vol. 26(1), pages 1-19, July.
    10. Schwab, Stewart, 1986. "Is Statistical Discrimination Efficient?," American Economic Review, American Economic Association, vol. 76(1), pages 228-34, March.
    11. George Galster, 1990. "Racial steering by real estate agents: Mechanisms and motives," The Review of Black Political Economy, Springer, vol. 19(1), pages 39-63, June.
    12. Ashenfelter, Orley & Oaxaca, Ronald, 1987. "The Economics of Discrimination: Economists Enter the Courtroom," American Economic Review, American Economic Association, vol. 77(2), pages 321-25, May.
    13. Killingsworth, Mark R, 1993. "Analyzing Employment Discrimination: From the Seminar Room to the Courtroom," American Economic Review, American Economic Association, vol. 83(2), pages 67-72, May.
    14. Chambers, Daniel N., 1992. "The racial housing price differential and racially transitional neighborhoods," Journal of Urban Economics, Elsevier, vol. 32(2), pages 214-232, September.
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