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Federal Reserve Bank of Boston
Working Papers
The supply side of discrimination: evidence from the labor supply of Boston taxi drivers
Osborne Jackson
Abstract

This paper investigates supply-side discrimination in the labor market for Boston taxi drivers. Using data on millions of trips from 2010–2015, I explore whether the labor supply behavior of taxi drivers differs by the gender, racial/ethnic, or age composition of Boston neighborhoods. I find that disparities in shift hours due to neighborhood demographics exist even when differences in local earnings opportunities are taken into account. I observe heterogeneity in the amount that drivers discriminate and find that this discrimination is primarily statistical rather than taste-based. As drivers gain experience and learn to better anticipate wage variation, discrimination decreases.


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Osborne Jackson, The supply side of discrimination: evidence from the labor supply of Boston taxi drivers, Federal Reserve Bank of Boston, Working Papers 18-2, 01 Jun 2018.
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Keywords: discrimination; labor supply; Boston taxis; wage elasticity
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