Discrimination Flashcards
(29 cards)
What is discrimination?
The unequal treatment of particular groups
What are the broad two categories of pay discrimination?
Taste based and statistical
What does taste-based discrimination comprise? What are the results?
Employer, co-worker and customer (consumer) discrimination.
Particular groups are paid less than comparable groups
As well as pay discrimination, give 3 more types of discrimination in sport.
- Hiring and exit discrimination. Longer careers for particular groups?
- Hiring discrimination for head coaches?
- Biased treatment from referees?
Why’s sports data good for looking at discrimination?
Because we know everyone’s productivity which would otherwise be tough to measure in ordinary occupations.
What is Becker’s Theory?
Firms that practice taste-based discrimination will suffer financial losses and will be forced out of their industries in perfect competition.
How does Becker’s theory extend to sports?
Teams that practice taste-based discrimination should have fewer wins than teams that do not.
Talk about Goff &Tollison (2022).
NLB - innovation of having a black player (Jackie Robinson) was imitated by other teams and their performances improved.
Talk about Berri & Simmons (2009)
- Evidence that black quarter backs are underpaid relative to white quarter backs
- Blacks also weren’t being compensated in the market for their ability to rush.
Talk about Brian Volz (2017)
When controlling for many factors, black QBs are more likely to be benched which is detrimental to team performance.
What is Johnson & Minuci about?
What do they use to find what?
-Looks at impact of race on salary in the NBA using free contract signings.
-Using weighted linear regression and the Oaxaca-blinder decomposition they find that blacks are paid 13.1% less
- They also use weighted quantile regression to find consumer discrimination.
Talk about Johnson and Minuci’s use of weighted least squares.
They run standard regressions controlling for many factors to find log(salary).
They used 4 specifications which use different performance metrics (p,a,r,b,s vs VORP)
They find that black players are underpaid 11.6-13.1%
In Johnson & Minuci, what was controlled for in WLS?
Population, coach, player characteristics, race, performance
And season, team and position fixed effects
Why use the Oaxaca-Blinder decomposition?
We can see how much of the difference in regression results can be explained.
Gap = E + U
What did the Oaxaca-Blinder decomposition find?
There’s a 20.5% gap in the mean average salary. 36.2 % of this gap is due to systematic differences in characteristics
63.9% in unexplained by the predictors and this is attributed to discrimination.
Overall, black players receive 13.1% less than non-blacks ceteris paribus.
What is consumer discrimination?
How does Johnson and Minuci explain it?
A decrease in salary explained by consumer preferences.
Consumers have a preference to observe players similar to themselves.
How do Johnson and Minuci test for consumer discrimination?
What other interesting result do we see?
What explains this?
They use weighted quantile regression which includes an interaction term (Black*WhitePop) to shows that racial wage gap increases with white population.
We also see that the racial wage gap is only significant for the upper portion of the salary distribution (75th quantile and up) (role and star players)
As black players become more visible, the higher the racial wage gap.
What do we see when we look at minutes played?
Salaries increase with minutes played. But salaries for blacks increase at a slower rate as compared to non-blacks
What weaknesses on this paper can we address?
MSA (metropolitan statistical area) as a measure.
VORP doesn’t capture everything
GSW as MSA stat.
Used to be located in Oakland but had heavy SF support.
Oakland - 21% black
SF - 4% black
Talk about discrimination in football in the 1960s.
Plenty of hooliganism and racism. Does it affect performances?
Why is racial pay discrimination hard to analyse in European (other than Italy) football?
Salary data isn’t readily available.
Given pay data isn’t readily available in English football, how did Szymanski (2000) analyse discrimination?
Did a test for market discrimination.
Runs a regression for team performance. If there’s no discrimination, the coefficient on the share of black players in a team should be insignificant
In Szymanski (2000), what does it mean if there’s a positive and significant coefficient on share of black players in a team?
Team performance could be improved at no additional cost by hiring more blacks
