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What Has Economics to Say about Racial Discrimination?

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  • Kenneth J. Arrow

Abstract

Racial discrimination pervades every aspect of a society in which it is found. It is found above all in attitudes of both races, but also in social relations, in intermarriage, in residential location, and, frequently, in legal barriers. It is also found in levels of economic accomplishment; that is, income, wages, prices paid, and credit extended. It is natural to suppose that economic analysis can cast light on the economic effects of racial discrimination. But the pervasiveness of the phenomenon must give us pause. Can a phenomenon manifest everywhere in the social world really be understood, even in only one aspect, by the tools of a single discipline? I want to explore here the scope and limits of ordinary economic analysis for understanding racial discrimination even in markets.

Suggested Citation

  • Kenneth J. Arrow, 1998. "What Has Economics to Say about Racial Discrimination?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 91-100, Spring.
    • Handle: RePEc:aea:jecper:v:12:y:1998:i:2:p:91-100
    Note: DOI: 10.1257/jep.12.2.91
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.12.2.91
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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