Discrimination: Empirical Evidence from the United States

Abstract

The study of discrimination received a major impetus in the 1960's when increasing social attention focused upon race and gender differentials in market outcomes. Gary Becker's The Economics of Discrimination (1957) strongly influenced empirical research by providing a definition of wage discrimination and suggesting a specific way in which it might operate. During the following years new theories were developed and refined in an attempt to explain why there appears to be continued discrimination in spite of market forces presumably operating against it. Similarly, a large amount of empirical work has been done to determine whether and how much discrimination actually exists, and to a lesser extent to test the implications of the various theories. Even so, the hope expressed by Becker in the preface of the second edition (1971) that our understanding of discrimination would increase so rapidly that the materials in his book would become obsolete before another decade began has clearly not been fulfilled. Here, we review what has been learned in the intervening years and suggest some fruitful directions for future research.1 The focus of this paper, like that of most of the empirical research in this area, is on determining the extent of discrimination rather than on testing alternative models of discrimination.

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