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‘Hate at First Sight’: Evidence of consumer discrimination against African-Americans in the US

Listed author(s):
  • Laouénan, Morgane

The paper tests evidence of customer discrimination against African-Americans in the US using a two-sector matching model with racial sector-specific preferences or abilities, employer discrimination, and customer discrimination. The test strategy makes it possible to disentangle customer from pure employer discrimination. This paper proves the existence of discrimination against African-Americans at job entry from both employers and consumers in the US. It also reports that racial prejudice has a quantitative effect on the relative employment and contact probabilities of African-Americans. A decrease in the intensity of discrimination by one standard deviation would raise the raw employment rate of African-Americans by 10% and would increase the proportion of African-Americans in jobs in contact with customers by 25%.

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File URL: http://www.sciencedirect.com/science/article/pii/S0927537117301756
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Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 46 (2017)
Issue (Month): C ()
Pages: 94-109

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Handle: RePEc:eee:labeco:v:46:y:2017:i:c:p:94-109
DOI: 10.1016/j.labeco.2017.03.008
Contact details of provider: Web page: http://www.elsevier.com/locate/labeco

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  6. Kahn, Lawrence M & Sherer, Peter D, 1988. "Racial Differences in Professional Basketball Players' Compensation," Journal of Labor Economics, University of Chicago Press, vol. 6(1), pages 40-61, January.
  7. Ihlanfeldt, Keith R & Young, Madelyn V, 1994. "Intrametropolitan Variation in Wage Rates: The Case of Atlanta Fast-Food Restaurant Workers," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 425-433, August.
  8. Peter McHenry, 2011. "The Relationship between Location Choice and Earnings Inequality," Working Papers 112, Department of Economics, College of William and Mary.
  9. Paul Beaudry & David A. Green & Benjamin Sand, 2012. "Does Industrial Composition Matter for Wages? A Test of Search and Bargaining Theory," Econometrica, Econometric Society, vol. 80(3), pages 1063-1104, May.
  10. Bound, John & Holzer, Harry J, 1993. "Industrial Shifts, Skills Levels, and the Labor Market for White and Black Males," The Review of Economics and Statistics, MIT Press, vol. 75(3), pages 387-396, August.
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  14. Kenney, Genevieve M & Wissoker, Douglas A, 1994. "An Analysis of the Correlates of Discrimination Facing Young Hispanic Job-Seekers," American Economic Review, American Economic Association, vol. 84(3), pages 674-683, June.
  15. Kerwin Kofi Charles & Jonathan Guryan, 2008. "Prejudice and Wages: An Empirical Assessment of Becker's The Economics of Discrimination," Journal of Political Economy, University of Chicago Press, vol. 116(5), pages 773-809, October.
  16. Jonathan S. Leonard & David I. Levine & Laura Giuliano, 2010. "Customer Discrimination," The Review of Economics and Statistics, MIT Press, vol. 92(3), pages 670-678, August.
  17. Pierre-Philippe COMBES & Bruno DECREUSE & Morgane LAOUENAN & Alain TRANNOY, 2013. "Customer Discrimination and Employment OUtcomes: Theory and Evidence from the French Labor Market," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2013016, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  18. Gordon B. Dahl, 2002. "Mobility and the Return to Education: Testing a Roy Model with Multiple Markets," Econometrica, Econometric Society, vol. 70(6), pages 2367-2420, November.
  19. John F. Kain, 1968. "Housing Segregation, Negro Employment, and Metropolitan Decentralization," The Quarterly Journal of Economics, Oxford University Press, vol. 82(2), pages 175-197.
  20. Sundstrom, William A., 2007. "The Geography of Wage Discrimination in the Pre Civil Rights South," The Journal of Economic History, Cambridge University Press, vol. 67(02), pages 410-444, June.
  21. Lawrence M. Kahn, 1991. "Discrimination in Professional Sports: A Survey of the Literature," ILR Review, Cornell University, ILR School, vol. 44(3), pages 395-418, April.
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