Alex Bryson, Arnaud Chevalier, 15 August 2014

Racial gaps in wages are often attributed to discrimination but data limitations make drawing strong conclusions difficult. Economists usually distinguish between taste-based and statistical discrimination. This column presents evidence from a new test of taste-based discrimination. Examining hiring decisions in the English Fantasy Premier League, the authors do not find that employers discriminate based on race. One explanation for this is that good productivity measures minimise the opportunities for statistical discrimination, which according to studies drives the racial difference in market outcomes.

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