Cross-Assignment Discrimination in Pay: A Test Case of Major League Baseball
AbstractThe traditional Becker/Arrow style model of discrimination depicts majority and minority and workers as perfectly substitutable inputs, implying that all workers have the same job assignment. The model is only appropriate for determining whether pay differences between, for example, whites and non-whites doing job assignment A are attributable to prejudice ('within-assignment discrimination'); It is inappropriate, however, for determining whether pay differences between whites in job assignment A and non-whites in job assignment B reflect discriminatory behaviour ('cross-assignment discrimination'). We test the model of such cross assignment discrimination developed by Bodvarsson and Sessions (2011) using data on Major League Baseball hitters and pitchers for four different seasons during the 1990s, a decade during which monopsony power fell. We find strong evidence of ceteris paribus racial pay differences between hitters and pitchers, as well as evidence that cross-assignment discrimination varies with labour market structure.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5989.
Length: 33 pages
Date of creation: Sep 2011
Date of revision:
Publication status: published in: Labour Economics, 2014, 28. 84-95
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Find related papers by JEL classification:
- J7 - Labor and Demographic Economics - - Labor Discrimination
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-01 (All new papers)
- NEP-LAB-2011-10-01 (Labour Economics)
- NEP-LMA-2011-10-01 (Labor Markets - Supply, Demand, & Wages)
- NEP-SPO-2011-10-01 (Sports & Economics)
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.:
- Kahanec, Martin, 2006. "The Substitutability of Labor of Selected Ethnic Groups in the US Labor Market," IZA Discussion Papers 1945, Institute for the Study of Labor (IZA).
- Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226041162, March.
- Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
- Gawande, Kishore, 1997. "Generated regressors in linear and nonlinear models," Economics Letters, Elsevier, vol. 54(2), pages 119-126, February.
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