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lecture25_Nov30 - Race Discrimination(continued Racial...

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Race Discrimination (continued)
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Racial Discrimination – Evidence from Pro Sports § Assume fans and owners only care about winning § Equally productive players paid same amount § Two teams with same wage bill have same winning  percentage regardless of race § Syzmanski (2000) – Professional Soccer § Teams with more blacks win more, given the same total  payroll § Suggests blacks are underpaid given on-field productivity
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3 Customer Prejudice: Evidence from Pro Sports § Baseball card prices § Cards for retired white players sold for 10 to 13 percent  more than the cards for retired nonwhite players with  comparable performance measures. §  NBA viewership and salaries § Among those with equal productivity, salaries of whites  average 1/6 to 1/4 more than African-Americans. § Evidence of fan discrimination § A white player increases attendance and revenues by 16-23%  over an equally skilled African-American players § Basketball teams have more white players when local audience  market has a higher proportion of whites.
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Audit Studies: General Methodology § Methodology § Send two candidates to apply/interview for jobs, who are  equally matched except for group membership  (race/gender) § Record reaction each encounters § Look for systematic differences in treatment § Advantages § Can control for more productivity differences than  regression method § Can examine more stages of the application process § Can detect more subtle differences in behaviors
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Racial Sounding Names Audit Study § Does an applicant’s race affect the chance that they  will be called back for an interview?
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