%0 Report %A Bodvarsson, Örn B. %A Sessions, John G. %T The Measurement of Racial Discrimination in Pay between Job Categories: Theory and Test %D 2008 %8 2008 Oct %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 3748 %U https://www.iza.org/publications/dp3748 %X 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. %K integration %K imperfect substitutability %K wages %K discrimination