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Racial Stigma: Toward a New Paradigm for Discrimination Theory

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  • Glenn C. Loury

Abstract

This essay examines interconnections between "race" and economic inequality in the United States, focusing on the case of African-Americans. I will argue that it is crucially important to distinguish between racial discrimination and racial stigma in the study of this problem. Racial discrimination has to do with how blacks are treated, while racial stigma is concerned with how black people are perceived. My view is that what I call reward bias (unfair treatment of persons in formal economic transactions based on racial identity) is now a less significant barrier to the full participation by African-Americans in U.S. society than is what I will call development bias (blocked access to resources critical for personal development but available only via non-market-mediated social transactions). By making these points in the specific cultural and historical context of the black experience in U.S. society, I hope to contribute to a deeper conceptualization of the worldwide problem of race and economic marginality.

Suggested Citation

  • Glenn C. Loury, 2003. "Racial Stigma: Toward a New Paradigm for Discrimination Theory," American Economic Review, American Economic Association, vol. 93(2), pages 334-337, May.
    • Handle: RePEc:aea:aecrev:v:93:y:2003:i:2:p:334-337
    Note: DOI: 10.1257/000282803321947308
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    Cited by:

    1. Jasso, Guillermina, 2011. "Migration and Stratification," IZA Discussion Papers 5904, Institute of Labor Economics (IZA).
    2. Schulze, William & Maertens, Annemie & Wansink, Brian, 2013. "Eating dogfood: Examining the relative roles of reason and emotion," Journal of Economic Behavior & Organization, Elsevier, vol. 92(C), pages 202-213.
    3. Pablo Brañas-Garza & Olusegun A. Oyediran & M.Fernanda Rivas, 2010. "An experimental test of prejudice about foreign people," ThE Papers 10/04, Department of Economic Theory and Economic History of the University of Granada..
    4. Esther Roca, 2010. "The Exercise of Moral Imagination in Stigmatized Work Groups," Journal of Business Ethics, Springer, vol. 96(1), pages 135-147, September.
    5. Ian Blount & Mingxiang Li, 2021. "How Buyers' Attitudes Toward Supplier Diversity Affect Their Expenditures with Ethnic Minority Businesses," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(3), pages 3-24, July.

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