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Discrimination and the Effects of Drug Testing on Black Employment

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  • Wozniak, Abigail

    ()
    (University of Notre Dame)

Abstract

Nearly half of U.S. employers test job applicants and workers for drugs. I use variation in the timing and nature of drug testing regulation to study discrimination against blacks related to perceived drug use. Black employment in the testing sector is suppressed in the absence of testing, consistent with ex ante discrimination on the basis of drug use perceptions. Adoption of pro-testing legislation increases black employment in the testing sector by 7-30% and relative wages by 1.4-13.0%, with the largest shifts among low skilled black men. Results suggest that employers substitute white women for blacks in the absence of testing.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6605.

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Length: 61 pages
Date of creation: May 2012
Date of revision:
Handle: RePEc:iza:izadps:dp6605

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Keywords: employer drug testing; discrimination; black employment; labor market outcome disparities;

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  1. Robert Kaestner, 1998. "Does Drug Use Cause Poverty?," NBER Working Papers 6406, National Bureau of Economic Research, Inc.
  2. Kerwin Kofi Charles & Jonathan Guryan, 2011. "Studying Discrimination: Fundamental Challenges and Recent Progress," Annual Review of Economics, Annual Reviews, Annual Reviews, vol. 3(1), pages 479-511, 09.
  3. Alexandre Mas, 2008. "Does Post-Accident Drug Testing Reduce Injuries? Evidence from a Large Retail Chain," American Law and Economics Review, Oxford University Press, Oxford University Press, vol. 10(2), pages 246-302.
  4. David Card & John E. DiNardo, 2002. "Skill Biased Technological Change and Rising Wage Inequality: Some Problems and Puzzles," NBER Working Papers 8769, National Bureau of Economic Research, Inc.
  5. Chaim Fershtman & Uri Gneezy, 2001. "Discrimination In A Segmented Society: An Experimental Approach," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 116(1), pages 351-377, February.
  6. Jacobson, Mireille, 2003. "Drug Testing in the Trucking Industry: The Effect on Highway Safety," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 46(1), pages 131-56, April.
  7. Fryer, Roland G. & Pager, Devah & Spenkuch, Jörg L., 2011. "Racial Disparities in Job Finding and Offered Wages," MPRA Paper 33607, University Library of Munich, Germany.
  8. Dennis J. Aigner & Glen G. Cain, 1977. "Statistical theories of discrimination in labor markets," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 30(2), pages 175-187, January.
  9. Joseph G. Altonji & Charles R. Pierret, 1997. "Employer Learning and Statistical Discrimination," NBER Working Papers 6279, National Bureau of Economic Research, Inc.
  10. Holzer, Harry J & Raphael, Steven & Stoll, Michael A, 2006. "Perceived Criminality, Criminal Background Checks, and the Racial Hiring Practices of Employers," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 49(2), pages 451-80, October.
  11. Lundberg, Shelly J & Startz, Richard, 1983. "Private Discrimination and Social Intervention in Competitive Labor Markets," American Economic Review, American Economic Association, American Economic Association, vol. 73(3), pages 340-47, June.
  12. Oettinger, Gerald S, 1996. "Statistical Discrimination and the Early Career Evolution of the Black-White Wage Gap," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 14(1), pages 52-78, January.
  13. Abigail Wozniak, 2011. "Field Perspectives on the Causes of Low Employment Among Less Skilled Black Men," American Journal of Economics and Sociology, Wiley Blackwell, Wiley Blackwell, vol. 70(3), pages 811-844, 07.
  14. Keith Finlay, 2008. "Effect of Employer Access to Criminal History Data on the Labor Market Outcomes of Ex-Offenders and Non-Offenders," NBER Working Papers 13935, National Bureau of Economic Research, Inc.
  15. Stephen L. Mehay & Rosalie Liccardo Pacula, 1999. "The Effectiveness of Workplace Drug Prevention Policies: Does 'Zero Tolerance' Work?," NBER Working Papers 7383, National Bureau of Economic Research, Inc.
  16. Heckman, James J & Honore, Bo E, 1990. "The Empirical Content of the Roy Model," Econometrica, Econometric Society, Econometric Society, vol. 58(5), pages 1121-49, September.
  17. David H. Autor & David Scarborough, 2008. "Does Job Testing Harm Minority Workers? Evidence from Retail Establishments," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 123(1), pages 219-277, 02.
  18. Heckman, James J & Sedlacek, Guilherme, 1985. "Heterogeneity, Aggregation, and Market Wage Functions: An Empirical Model of Self-selection in the Labor Market," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 93(6), pages 1077-1125, December.
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As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Drug testing and discrimination
    by Eric Crampton in Offsetting Behaviour on 2014-05-20 23:17:00

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