Discrimination

Theory and Measurement

Original Theories

Marxist: Discrimination a Smoke Screen– Capitalists want to divide proletariat– Do so by Race, Sex, Ethnicity

• Could be anything (earlobes?)

– Keeps workers at each others’ throats• And away from their own

Psychological: A mistake– People don’t know truth about others– Just have to educate them

Neoclassical Theory

Basis of what we shall do What’s your favorite flavor of ice cream? Why? Can we make you change your mind? Prejudice is a taste

– Discrimination is indulging that taste– Comes at a cost

Suppose I am Prejudiced

I don’t like blondes!– Employing them brings

a psychic cost – As if paying them more

wB=(1+d)w0

Demand falls– D’ feels like D

Let’s act this out

w

D

D’

QB

wB

w0

Impact on Market

How do blondes respond? Offer to work for less

– Wage falls

What do employers do? Restrict choice of employees

– Productivity of favored workers may fall• Forced to employ less productive workers

– Wages of favored workers driven up• Supply of qualified workers artificially restricted

Who Gains and Who Loses?

Blonde workers lose– Fewer employed– Wages lower

Other workers win– More employed

• Perhaps less qualified

– Wages higher Employers?

What About Employers?

Trade off profit & distaste for blondes– U=U(,B)– Indifference Curve

higher if hire blondes– Lower pay– Better Workers

Sacrifice profit to indulge taste for discrimination

Blondes

Another Beneficiary

Non/Less discriminatory employers Hire more qualified employees for less What happens as more of them enter? Wage of blondes driven up Perfect competition eliminates

discrimination

Application to Sports What of 1964 Alabama football team? Very good – and very white But ‘Bama started losing to integrated teams

– Sam “Bam” Cunningham of USC scores 5 TD’s against them on national TV

Cost became too great– Sports became most integrated part of UA

Bob Gibson and his (black) landlady– Spring housing segregated in early 1960s – Hated her for charging high rent

Why does discrimination persist?

Monopoly Power

Baseball has legal cartel– Policed by commissioner– Teams tried to cheat: Cubans & Indians– Bill Veeck foiled in 1943– Jackie Robinson reintegrated baseball

• Moses “Fleetwood” Walker in A.A. in 1880s

Integrated teams tended to dominate– Dodgers, Giants, Indians, & Braves– Red Sox & Phillies last to integrate– Great Celtic teams built on integration

Employee Discrimination

Workers don’t like to work with blondes– Feel psychic cost: w = (1-d)w0

– Demand higher pay to work with blondes What would employer do? Segregation vs Discrimination Dodgers protested Robinson’s presence

– Got Al Gionfriddo partly to take next locker

Customer Discrimination

Separates discrimination from prejudice Employer punished for tolerance George Preston Marshall & NFL’s Redskins

– Last NFL team to integrate: 1962• “Burgundy, Gold, and Caucasian”

– Forced by U.S. government• Facility on government land

One key to intransigence: Southern audience

Statistical Discrimination

Also separates from prejudice– Reminiscent of psychological approach

May feel that blondes less productive– Why different from saying dropouts worse?

“Flashy Frenchmen” in the NHL– Felt that Francophones not tough– Europeans & Flyers

bMeasuring Discrimination

Motivating question:– How can blacks in NBA be victims when

• 80% of NBA black• Make 20% more

All else not equal How to hold all else equal? Key technique: Multiple regression S=b0 + b1X1 + b2X2 + …+ bnXn +e

Regression and Discrimination Coefficient: impact of Xi with all other

X’s constant Corresponds to economic definition of

discrimination– Holds all else equal

What would X’s be for NBA? How to explain that blacks make more? True impact of race unclear

Sexual Discrimination

Harder to measure– Men & Women seldom in same venue– Often don’t play same sport– Even same sport may vary

• Tennis, figure skating, & “women’s basketball”

Direct competition?: Jockeys & auto racing Women not always victims

– Gymnasts and figure skaters

Title IX Part of 1972 Education Amendments Mandated equal access & opportunities

for women in federally funded education programs

3 ways to comply– Funding proportional to enrollment– Show history of expansion– Interests of students accommodated

Few programs in compliance– But NCAA certifies all

Impacts of Title IX

Good– Spurred rapid growth in women’s sports

• Though most of growth early on

– Gave grounds to seek remediation (TU!) Bad

– What happened to women coaches?• Was ~80% of women’s programs - now ~ 44%

– Women’s programs lose money– Can meet in many ways –

• Cut men’s programs rather than expanding women’s

A Problem

Bernie Williams– Star player for Yankees

What is he? Hometown: San Juan How to classify?

– Ask player?– Ask owner?– Ask fans?

Puzzling Numbers From Track

Asians ~ 57% of world’s population– Only impact in marathon

Blacks ~ 12% of world’s population– 95% of best 100m times of West African ancestry

• ~8% of world’s population• All 32 finalists in last 4 Olympics

– North Africa dominates middle distance– East Africa dominates distance

Astonishing Kenya

More than half of top 100 5K & 10K times Top 60 times in steeplechase Won every World Cross Country

Championship since 1986 38 Olympic track medals since 1964

– 13 golds in men’s races– Only U.S. (with 10X as many people) has more

More on Kenya

75% of Kenya’s runners from Kalenjin– Highlands near Lake Victoria

50% of these from Nandi district– 1.8% of Kenya’s population– 20% of winners of major distance runs

Not due to better facilities Other nations also have altitude

Discomfort with Genetics

Intelligence as subtext Demeans accomplishments?

– “Natural” black v. “hardworking” white Demeans blacks in other fields?

– “Naturally” better in some areas

=> worse in others?– Some get brains – others brawn

An Alternative Explanation

Hoberman: Darwin’s Athletes Blacks once considered ill-suited for athletics

– Analog to women?– Opposite stereotype of today

• Considered physically fragile & weak-willed

Now see athletics the best route to success– Survey: More black youths optimistic about

chances at athletics than in professions– Only ethnic group to think so