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Theory and Measurement
              Original Theories

   Marxist: Discrimination a Smoke Screen
    – Capitalists want to divide proletariat
    – Do so by Race, Sex, Ethnicity
       • Could be anything (earlobes?)
    – Keeps workers at each others’ throats
       • And away from their own
   Psychological: A mistake
    – People don’t know truth about others
    – Just have to educate them
Neoclassical Theory

 Basis of what we shall do
 What’s your favorite flavor of ice cream?
 Why?
 Can we make you change your mind?
 Prejudice is a taste
    – Discrimination is indulging that taste
    – Comes at a cost
          Suppose I am Prejudiced
   I don’t like blondes!
    – Employing them brings
      a psychic cost
    – As if paying them more wB
 wB=(1+d)w0
 Demand falls
    – D’ feels like D                 D’
   Let’s act this out
               Impact on Market

 How do blondes respond?
 Offer to work for less
    – Wage falls
 What do employers do?
 Restrict choice of employees
    – Productivity of favored workers may fall
       • Forced to employ less productive workers
    – Wages of favored workers driven up
       • Supply of qualified workers artificially restricted
     Who Gains and Who Loses?

   Blonde workers lose
    – Fewer employed
    – Wages lower
   Other workers win
    – More employed
      • Perhaps less qualified
    – Wages higher
   Employers?
         What About Employers?
   Trade off profit & distaste   p
    for blondes
    – U=U(p,B)
    – Indifference Curve
   p higher if hire blondes
    – Lower pay
    – Better Workers
   Sacrifice profit to indulge
    taste for discrimination

         Another Beneficiary

 Non/Less discriminatory employers
 Hire more qualified employees for less
 What happens as more of them enter?
 Wage of blondes driven up
 Perfect competition eliminates
Application to Sports
 What of 1964 Alabama football team?
 Very good – and very white
 But ‘Bama started losing to integrated teams
    – Sam “Bam” Cunningham of USC scores 5 TD’s
      against them on national TV
   Cost became too great
    – Sports became most integrated part of UA
   Bob Gibson and his (black) landlady
    – Spring housing segregated in early 1960s
    – Hated her for charging high rent
   Why does discrimination persist?
                Monopoly Power
   Baseball has legal cartel
    –   Policed by commissioner
    –   Teams tried to cheat: Cubans & Indians
    –   Bill Veeck foiled in 1943
    –   Jackie Robinson reintegrated baseball
         • Moses “Fleetwood” Walker in A.A. in 1880s
   Integrated teams tended to dominate
    – Dodgers, Giants, Indians, & Braves
    – Red Sox & Phillies last to integrate
    – Great Celtic teams built on integration
       Employee Discrimination

   Workers don’t like to work with blondes
    – Feel psychic cost: w = (1-d)w0
    – Demand higher pay to work with blondes
 What would employer do?
 Segregation vs Discrimination
 Dodgers protested Robinson’s presence
    – Got Al Gionfriddo partly to take next locker
         Customer Discrimination

 Separates discrimination from prejudice
 Employer punished for tolerance
 George Preston Marshall & NFL’s Redskins
    – Last NFL team to integrate: 1962
       • “Burgundy, Gold, and Caucasian”
    – Forced by U.S. government
       • Facility on government land
   One key to intransigence: Southern audience
       Statistical Discrimination

   Also separates from prejudice
    – Reminiscent of psychological approach
   May feel that blondes less productive
    – Why different from saying dropouts worse?
   “Flashy Frenchmen” in the NHL
    – Felt that Francophones not tough
    – Europeans & Flyers
      bMeasuring Discrimination

   Motivating question:
    – How can blacks in NBA be victims when
       • 80% of NBA black
       • Make 20% more
 All else not equal
 How to hold all else equal?
 Key technique: Multiple regression
 S=b0 + b1X1 + b2X2 + …+ bnXn +e
Regression and Discrimination
 Coefficient: impact of Xi with all other
  X’s constant
 Corresponds to economic definition of
    – Holds all else equal
 What would X’s be for NBA?
 How to explain that blacks make more?
 True impact of race unclear
Sexual Discrimination

   Harder to measure
    – Men & Women seldom in same venue
    – Often don’t play same sport
    – Even same sport may vary
       • Tennis, figure skating, & “women’s basketball”
 Direct competition?: Jockeys & auto racing
 Women not always victims
    – Gymnasts and figure skaters
                    Title IX
 Part of 1972 Education Amendments
 Mandated equal access & opportunities
  for women in federally funded education
 3 ways to comply
    – Funding proportional to enrollment
    – Show history of expansion
    – Interests of students accommodated
   Few programs in compliance
    – But NCAA certifies all
Impacts of Title IX
   Good
    – Spurred rapid growth in women’s sports
       • Though most of growth early on
    – Gave grounds to seek remediation (TU!)
   Bad
    – What happened to women coaches?
       • Was ~80% of women’s programs - now ~ 44%
    – Women’s programs lose money
    – Can meet in many ways –
       • Cut men’s programs rather than expanding women’s
                      A Problem
   Bernie Williams
    – Star player for Yankees
   What is he?
   Hometown: San Juan
   How to classify?
    – Ask player?
    – Ask owner?
    – Ask fans?
    Puzzling Numbers From Track

   Asians ~ 57% of world’s population
    – Only impact in marathon
   Blacks ~ 12% of world’s population
    – 95% of best 100m times of West African ancestry
       • ~8% of world’s population
       • All 32 finalists in last 4 Olympics
    – North Africa dominates middle distance
    – East Africa dominates distance
            Astonishing Kenya

 More than half of top 100 5K & 10K times
 Top 60 times in steeplechase
 Won every World Cross Country
  Championship since 1986
 38 Olympic track medals since 1964
    – 13 golds in men’s races
    – Only U.S. (with 10X as many people) has more
             More on Kenya

   75% of Kenya’s runners from Kalenjin
    – Highlands near Lake Victoria
   50% of these from Nandi district
    – 1.8% of Kenya’s population
    – 20% of winners of major distance runs
 Not due to better facilities
 Other nations also have altitude
       Discomfort with Genetics

 Intelligence as subtext
 Demeans accomplishments?
    – “Natural” black v. “hardworking” white
   Demeans blacks in other fields?
    – “Naturally” better in some areas
    => worse in others?
    – Some get brains – others brawn
      An Alternative Explanation

 Hoberman: Darwin’s Athletes
 Blacks once considered ill-suited for athletics
    – Analog to women?
    – Opposite stereotype of today
       • Considered physically fragile & weak-willed
   Now see athletics the best route to success
    – Survey: More black youths optimistic about
      chances at athletics than in professions
    – Only ethnic group to think so

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