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The Labor Market Effects of Sex and Race Discrimination Laws

Author

Listed:
  • David Neumark
  • Wendy A. Stock

Abstract

We study the effects of state sex and race discrimination laws that were passed prior to federal antidiscrimination legislation. State sex discrimination laws targeted discrimination in pay only. Because an equal pay constraint raises the relative price of female labor, we would expect the relative employment of females to decline. We find robust evidence that state equal pay laws for women reduced relative employment of both black women and white women. We also find some evidence of positive effects of race discrimination laws on earnings of blacks relative to whites, although no evidence of employment effects. (JEL J15, J16, J18, J23) Copyright 2006, Oxford University Press.

Suggested Citation

  • David Neumark & Wendy A. Stock, 2006. "The Labor Market Effects of Sex and Race Discrimination Laws," Economic Inquiry, Western Economic Association International, vol. 44(3), pages 385-419, July.
    • Handle: RePEc:oup:ecinqu:v:44:y:2006:i:3:p:385-419
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    Citations

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    Cited by:

    1. Becker, Sascha O. & Fernandes, Ana & Weichselbaumer, Doris, 2019. "Discrimination in hiring based on potential and realized fertility: Evidence from a large-scale field experiment," Labour Economics, Elsevier, vol. 59(C), pages 139-152.
    2. Diego Gentile Passaro & Fuhito Kojima & Bobak Pakzad-Hurson, 2023. "Equal Pay for Similar Work," Papers 2306.17111, arXiv.org.
    3. David Neumark, 2018. "Experimental Research on Labor Market Discrimination," Journal of Economic Literature, American Economic Association, vol. 56(3), pages 799-866, September.
    4. Nayoung Rim, 2021. "The Effect of Title IX on Gender Disparity in Graduate Education," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 40(2), pages 521-552, March.
    5. Justina A.V. Fischer & Christian Bjornskov & Axel Dreher, 2007. "On Gender Inequality and Life Satisfaction: Does Discrimination Matter?," University of St. Gallen Department of Economics working paper series 2007 2007-07, Department of Economics, University of St. Gallen.
    6. Axelsen, Dan & Underwood, Daniel A. & Friesner, Dan, 2009. "Cultural filtering in the hiring process and its relationship to welfare reform," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(3), pages 495-508, June.
    7. Scott Delhommer & Domonkos F. Vamossy, 2024. "Effect of State and Local Sexual Orientation Anti-Discrimination Laws on Labor Market Differentials," Papers 2404.03794, arXiv.org.
    8. Srikant Devaraj & Pankaj C. Patel, 2022. "State bans on pay secrecy and earnings: Evidence from the National Longitudinal Survey of Youth 1997," British Journal of Industrial Relations, London School of Economics, vol. 60(4), pages 697-734, December.
    9. Daniel Greene & Jaideep Shenoy, 2022. "How Do Anti-discrimination Laws Affect Firm Performance and Financial Policies? Evidence from the Post-World War II Period," Management Science, INFORMS, vol. 68(5), pages 3813-3833, May.
    10. Paola Salardi, 2016. "The Evolution of Gender and Racial Occupational Segregation Across Formal and Non‐Formal Labor Markets in Brazil, 1987 to 2006," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(S1), pages 68-89, August.
    11. Cruz, Gabriel & Rau, Tomás, 2022. "The effects of equal pay laws on firm pay premiums: Evidence from Chile," Labour Economics, Elsevier, vol. 75(C).
    12. Joanne Song McLaughlin, 2020. "Falling Between the Cracks: Discrimination Laws and Older Women," LABOUR, CEIS, vol. 34(2), pages 215-238, June.
    13. Ian Burn, 2018. "Not All Laws are Created Equal: Legal Differences in State Non-Discrimination Laws and the Impact of LGBT Employment Protections," Journal of Labor Research, Springer, vol. 39(4), pages 462-497, December.
    14. Michael Martell, 2013. "Do ENDAs End Discrimination for Behaviorally Gay Men?," Journal of Labor Research, Springer, vol. 34(2), pages 147-169, June.
    15. José-Ignacio Antón & Rafael Grande & Rafael Muñoz de Bustillo & Fernando Pinto, 2023. "Gender Gaps in Working Conditions," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 166(1), pages 53-83, February.
    16. Burn, Ian & Kettler, Kyle, 2019. "The more you know, the better you’re paid? Evidence from pay secrecy bans for managers," Labour Economics, Elsevier, vol. 59(C), pages 92-109.
    17. Kamal, Mustafa & Blacklow, Paul, 2021. "Australian age, period, cohort effects in the gender wage gap - 2001 to 2018," Working Papers 2021-02, University of Tasmania, Tasmanian School of Business and Economics.
    18. Barbara Boelmann, 2024. "Women’s Missing Mobility and the Gender Gap in Higher Education: Evidence from Germany’s University Expansion," ECONtribute Discussion Papers Series 280, University of Bonn and University of Cologne, Germany.

    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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