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What Is Known about Testing for Discrimination: Lessons Learned by Comparing across Different Markets

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Author Info
Stephen L. Ross (University of Connecticut)

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Abstract

The paper provides a fairly comprehensive examination of recent empirical work on discrimination within economics. The three major analytical approaches considered are traditional regression analysis of outcomes, paired testing or audits, and finally analysis of performance where higher group performance suggests that a group has been treated disfavorably. The review covers research in the labor, credit, and consumption markets, as well as recent studies of discrimination within the legal system. The review suggests that the validity of interpreting observed racial differences as discrimination depends heavily on whether the analysis is based on a sample that is representative of a population of individuals or households or based on a sample of market transactions, as well as the analyst?s ability to control for heterogeneity within that sample. Heterogeneous firm behavior and differentiated products, such as those found in labor and housing markets, also can confound empirical analyses of discrimination by confusing the allocation of individuals across firms or products with disparate treatment or by ignoring disparate impacts that might arise based on that allocation.

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Publisher Info
Paper provided by University of Connecticut, Department of Economics in its series Working papers with number 2003-21.

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Length: 90 pages
Date of creation: Aug 2003
Date of revision: Nov 2003
Handle: RePEc:uct:uconnp:2003-21

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Dhammika Dharmapala & Stephen Ross, 2004. "Racial Bias in Motor Vehicle Searches: Additional Theory and Evidence," Contributions to Economic Analysis & Policy, Berkeley Electronic Press, vol. 3(1), pages 1310-1310. [Downloadable!] (restricted)
    Other versions:
  2. John J. Donohue III, 2005. "The Law and Economics of Antidiscrimination Law," NBER Working Papers 11631, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Shamena Anwar & Hanming Fang, 2005. "An Alternative Test of Racial Prejudice in Motor Vehicle Searches: Theory and Evidence," NBER Working Papers 11264, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. John M. Clapp & Stephen L. Ross, 2001. "Schools and housing markets: an examination of school segregation and performance in Connecticut," Proceedings, Federal Reserve Bank of Chicago, issue Apr. [Downloadable!]
    Other versions:
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