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The Nature and Extent of Discrimination in the Marketplace: Evidence from the Field

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John A. List

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Abstract

Empirical studies have provided evidence that discrimination exists in various markets, but they rarely allow the analyst to draw conclusions concerning the nature of discrimination. By combining data from bilateral negotiations in the sportscard market with complementary field experiments, this study provides a framework that amends this shortcoming. The experimental design, which includes data gathered from more than 1100 market participants, provides sharp findings: (i) there is a strong tendency for minorities to receive initial and final offers that are inferior to those received by majorities, and (ii) overall, the data indicate that the observed discrimination is not due to animus, but represents statistical discrimination. © 2004 the President and Fellows of Harvard College and the Massachusetts Institute of Technology

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Publisher Info
Article provided by MIT Press in its journal The Quarterly Journal of Economics.

Volume (Year): 119 (2004)
Issue (Month): 1 (February)
Pages: 49-89
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Handle: RePEc:tpr:qjecon:v:119:y:2004:i:1:p:49-89

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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
  1. Eric Bettinger & Robert Slonim, 2005. "Using Experimental Economics to Measure the Effects of a Natural Educational Experiment on Altruism," NBER Working Papers 11725, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Marianne Bertrand & Dolly Chugh & Sendhil Mullainathan, 2005. "Implicit Discrimination," American Economic Review, American Economic Association, vol. 95(2), pages 94-98, May. [Downloadable!]
  3. Peter Riach & Judith Rich, 2006. "An Experimental Investigation of Sexual Discrimination in Hiring in the English Labor Market," Advances in Economic Analysis & Policy, Berkeley Electronic Press, vol. 6(2), pages 1416-1416. [Downloadable!] (restricted)
  4. David L. Dickinson & Ronald L. Oaxaca, 2006. "Statistical Discrimination in Labor Markets: An Experimental Analysis," IZA Discussion Papers 2305, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. Máximo Torero & Marco Castillo & Ragan Petrie, 2008. "Ethnic and Social Barriers to Cooperation: Experiments Studying the Extent and Nature of Discrimination in Urban Peru," RES Working Papers 3246, Inter-American Development Bank, Research Department. [Downloadable!]
  6. Jeffrey P. Carpenter & Glenn W. Harrison, 2005. "Field Experiments in Economics: An Introduction," Artefactual Field Experiments 0030, The Field Experiments Website. [Downloadable!]
  7. John J. Donohue III, 2005. "The Law and Economics of Antidiscrimination Law," NBER Working Papers 11631, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. David H. Autor & David Scarborough, 2004. "Will Job Testing Harm Minority Workers?," NBER Working Papers 10763, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Paul J. Ferraro & Ronald G. Cummings, 2005. "Cultural Diversity, Discrimination and Economic Outcomes: an experimental analysis," Artefactual Field Experiments 0040, The Field Experiments Website. [Downloadable!]
  10. John A. List, 2006. "Friend or Foe? A Natural Experiment of the Prisoner's Dilemma," NBER Working Papers 12097, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  11. List, John & Millimet, Daniel, 2005. "The Market: Catalyst for Rationality and Filter of Irrationality," Departmental Working Papers 0504, Southern Methodist University, Department of Economics. [Downloadable!]
    Other versions:
  12. Paul Frijters & Michael A. Shields & Stephen Wheatley Price & Nikolaos Theodoropoulos, 2006. "Testing for Employee Discrimination in Britain using Matched Employer-Employee Data," University of Cyprus Working Papers in Economics 8-2006, University of Cyprus Department of Economics. [Downloadable!]
  13. Lusk, Jayson L. & Norwood, F. Bailey & Pruitt, Ross, 2006. "Consumer Demand for a Ban on Antibiotic Drug Use in Pork Production," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35273, Southern Agricultural Economics Association. [Downloadable!]
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  14. Steven D. Levitt & John A. List, 2008. "Field Experiments in Economics: The Past, The Present, and The Future," NBER Working Papers 14356, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
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