The Measurement of Racial Discrimination in Pay between Job Categories: Theory and Test
AbstractThe 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.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3748.
Length: 22 pages
Date of creation: Oct 2008
Date of revision:
Publication status: published as 'The Measurement of Pay Discrimination Between Job Assignments' in: Labour Economics, 2011, 18 (3), 297-309
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Find related papers by JEL classification:
- J7 - Labor and Demographic Economics - - Labor Discrimination
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