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The supply side of discrimination: evidence from the labor supply of Boston taxi drivers

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  • Osborne Jackson

Abstract

This paper investigates supply-side discrimination in the labor market for Boston taxi drivers. Using data on millions of trips from 2010?2015, I explore whether the labor supply behavior of taxi drivers differs by the gender, racial/ethnic, or age composition of Boston neighborhoods. I find that disparities in shift hours due to neighborhood demographics exist even when differences in local earnings opportunities are taken into account. I observe heterogeneity in the amount that drivers discriminate and find that this discrimination is primarily statistical rather than taste-based. As drivers gain experience and learn to better anticipate wage variation, discrimination decreases.

Suggested Citation

  • Osborne Jackson, 2018. "The supply side of discrimination: evidence from the labor supply of Boston taxi drivers," Working Papers 18-2, Federal Reserve Bank of Boston.
    • Handle: RePEc:fip:fedbwp:18-2
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    References listed on IDEAS

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    More about this item

    Keywords

    discrimination; labor supply; Boston taxis; wage elasticity;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General

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