Taste‐Based or Statistical Discrimination: The Economics of Discrimination Returns to its Roots

16 Pages Posted: 27 Nov 2013

See all articles by Jonathan Guryan

Jonathan Guryan

Northwestern University - Human Development and Social Policy (HDSP) Program; National Bureau of Economic Research (NBER)

Kerwin Kofi Charles

University of Chicago - Harris School of Public Policy

Date Written: November 2013

Abstract

We briefly review the evolution of empirical work on discrimination. We discuss why traditional regression‐based approaches neither convincingly measure market discrimination nor disentangle the relative importance of animus versus statistical discrimination in explaining such discrimination as exists. We describe the development of modern correspondence studies. We argue that these studies have the promise to credibly identify the presence of discrimination if not its magnitude, can inform us about the underlying mechanism generating discrimination and can also point to avenues for new theoretical and empirical work on discrimination. We discuss two articles with exemplary applications of these new methods.

Suggested Citation

Guryan, Jonathan and Charles, Kerwin Kofi, Taste‐Based or Statistical Discrimination: The Economics of Discrimination Returns to its Roots (November 2013). The Economic Journal, Vol. 123, Issue 572, pp. F417-F432, 2013, Available at SSRN: https://ssrn.com/abstract=2360356 or http://dx.doi.org/10.1111/ecoj.12080

Jonathan Guryan

Northwestern University - Human Development and Social Policy (HDSP) Program ( email )

2046 Sheridan Road
Evanston, IL 60208
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Kerwin Kofi Charles

University of Chicago - Harris School of Public Policy ( email )

1155 East 60th Street
Chicago, IL 60637
United States
(773) 834-8922 (Phone)

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