Racial gaps in wages are often attributed to discrimination but data limitations make drawing strong conclusions difficult. Economists usually distinguish between taste-based and statistical discrimination. This column presents evidence from a new test of taste-based discrimination.
This article is co-authored by Alex Bryson, Senior Research Fellow at the National Institute of Economic and Social Research (NIESR). NIESR is a partner in two ESRC research centres, LLAKES and the Institute for Macroeconomics. Alex Bryson is also a Visiting Research Fellow at the Centre for Economic Performance (CEP) which is funded by the ESRC.