@TechReport{iza:izadps:dp3748, author={Bodvarsson, Örn B. and Sessions, John G.}, title={The Measurement of Racial Discrimination in Pay between Job Categories: Theory and Test}, year={2008}, month={Oct}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={3748}, url={https://www.iza.org/publications/dp3748}, abstract={The traditional model of taste discrimination in labor markets presumes perfect substitution, making it unsuitable for the measurement of discrimination across job assignments. We extend the model to explain cross-assignment discrimination and test it on data from Major League Baseball. A competitive firm with a Generalized Leontief production function fills each job assignment with whites and nonwhites in an environment of customer prejudice. According to the model, cross-assignment discrimination depends upon racial productivity differences, the productivity x prejudice interaction, technology, relative labor supply and racial integration. We find strong evidence of ceteris paribus racial salary differences between hitters and pitchers.}, keywords={integration;imperfect substitutability;wages;discrimination}, }