Federal Reserve Bank of Boston
The supply side of discrimination: evidence from the labor supply of Boston taxi drivers
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.
Cite this item
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.
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
- L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
Keywords: discrimination; labor supply; Boston taxis; wage elasticity
This item with handle RePEc:fip:fedbwp:18-2
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