TY - RPRT AU - Bodvarsson, Örn B. AU - Sessions, John G. TI - The Measurement of Racial Discrimination in Pay between Job Categories: Theory and Test PY - 2008/Oct/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 3748 UR - https://www.iza.org/publications/dp3748 AB - 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. KW - integration KW - imperfect substitutability KW - wages KW - discrimination ER -