Racial discrimination and competition

Ross Levine (), Alexey Levkov and Yona Rubinstein

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We provide the first assessment of whether an intensification of product market competition reduces the racial wage gap exactly where taste-based theories predict that competition will reduce labor market discrimination. in economies where employers have strong racial prejudices. We use bank deregulation across the U.S. states to identify an intensification of competition among banks, which in turn lowered entry barriers facing nonfinancial firms, especially firms that depend heavily on bank credit. Consistent with taste-based theories, we find that competition boosted blacks’ relative residual wages within the banking industry and bank-dependent industries, but only in states with strong tastes for discrimination.

Keywords: discrimination; imperfect competition; banks; regulation (search for similar items in EconPapers)
JEL-codes: D3 D43 G21 G28 J31 J7 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2011-08-17
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://eprints.lse.ac.uk/121724/ Open access version. (application/pdf)

Related works:
Working Paper: Racial Discrimination and Competition (2011)
Working Paper: Racial Discrimination and Competition (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:121724

Access Statistics for this paper

More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().