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nov 19 - Week 13: Structures of the Labor Market...

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Unformatted text preview: Week 13: Structures of the Labor Market Opportunities November 19, 2010 Racial Discrimination in the Labor Market • Discrimination? o Treating people different because of their membership in a particular social group Categorical (“I don’t want Latinos/Blacks”) Statistical (“On average, people in this group…”) • Traditional Methods to Determine Discrimination o Statistical Analysis without direct or indirect measures of discrimination o Studies of employers’ tastes and preferences B&M • Objective: use the audit studies method to determine the extent to which employers are making callback decisions • Audit Studies o A minority and majority group tester are carefully matched o They are also matched on “intangibles” • Determining Discrimination o The incidence of differential treatment is determined by comparing the experiences and outcomes for the two auditors • Weaknesses of Traditional Audit Studies 1. Can’t be identically the same 2. Auditors can manipulate findings 3. Audit Studies extremely expensive • Circumventing Problems o Relying only on resumes and not on people Much less expensive Auditors cannot manipulate findings through behavior Manipulate resumes so they’re identical in every conceivable way except race • Identities of Fictitious Applicants o Names were distinctly White or African ­American o Distinctive names were those that had the highest ratio used in the specific neighborhood • Is there a racial gap in callbacks? o White names elucidate a 9.7% chance of callbacks o African ­American names elucidate a 6.5% chance of callbacks • Contingencies? o Not by resume quality o Not by city o Not by neighborhood o Not by occupation o Not by employer characteristics • Conclusion: African ­American differential treatment when searching for jobs…those with African ­American names find it hard to overcome the hurdle in callbacks by improving their observable skills or credentials. ...
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