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Labor Mobility and Racial Discrimination

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  • Deschamps, Pierre
  • de Sousa, José

Abstract

This paper assesses the effects of labor mobility constraints on racial discrimination. Our equilibrium search model shows that these effects follow an inverted U-shaped relationship. In particular, when mobility constraints are low, we find that discrimination disappears. We test this prediction with an exogenous mobility shock on the European soccer labor market. The Bosman ruling by the European Court of Justice in 1995 lifted restrictions on soccer player mobility. Using a panel of all clubs in the English first division from 1981 to 2008, we compare the pre- and post-Bosman ruling market. Consistent with a taste-based explanation, we find evidence that wage discrimination disappears when constraints on worker mobility are lowered.

Suggested Citation

  • Deschamps, Pierre & de Sousa, José, 2015. "Labor Mobility and Racial Discrimination," CEPREMAP Working Papers (Docweb) 1501, CEPREMAP.
    • Handle: RePEc:cpm:docweb:1501
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    Cited by:

    1. Principe, Francesco & van Ours, Jan C., 2022. "Racial bias in newspaper ratings of professional football players," European Economic Review, Elsevier, vol. 141(C).
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    3. Hoey, Sam & Peeters, Thomas & Principe, Francesco, 2021. "The transfer system in European football: A pro-competitive no-poaching agreement?," International Journal of Industrial Organization, Elsevier, vol. 75(C).
    4. repec:hal:spmain:info:hdl:2441/64devegb4f8l7a342ageb19ehc is not listed on IDEAS
    5. Dalmazzo, Alberto & Leombruni, Roberto & Razzolini, Tiziano, 2023. "Anticipation Effects of EU Accession on Immigrants' Labour Market Outcomes," IZA Discussion Papers 16614, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    labor mobility; labor search; wage discrimination;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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