discrimination

Abstract

This paper tests for bias in consumer lending decisions using administrative data from a
high-cost lender in the United Kingdom. We motivate our analysis using a simple model of
bias in lending, which predicts that profits should be identical for loan applicants from different
groups at the margin if loan examiners are unbiased. We identify the profitability of marginal
loan applicants by exploiting variation from the quasi-random assignment of loan examiners.
We find significant bias against both immigrant and older loan applicants when using the firm’s
preferred measure of long-run profits. In contrast, there is no evidence of bias when using a
short-run measure used to evaluate examiner performance, suggesting that the bias in our setting
is due to the misalignment of firm and examiner incentives. We conclude by showing that a
decision rule based on machine learning predictions of long-run profitability can simultaneously
increase profits and eliminate bias.

Year of Publication
2018
Number
623
Date Published
08/2018
Publication Language
eng
Citation Key
10781
Dobbie, W., Liberman, A., Paravisini, D., & Pathania, V. (2018). Measuring Bias in Consumer Lending. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01tb09j8412 (Original work published August 2018)
Working Papers
Abstract

I examine racial disparities in police use of force using new data from New Jersey.
I find that blacks and Hispanics are more likely to have more severe types of force
used against them conditional on force, that these disparities persist after adjusting
for an exhaustive set of factors and using new methods to limit selection bias, and
that they increase with force severity. I then extend empirical Bayes methods to
estimate department-specific racial differences, finding significant variation across
New Jersey’s hundreds of departments. Finally, I observe that officer diversity
cannot predict these departmental disparities, though income and inequality may.

Year of Publication
2020
Number
639
Date Published
04/2020
Publication Language
eng
Citation Key
11666
Lieberman, C. (2020). Variation in Racial Disparities in Police Use of Force. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01h128nh61r (Original work published April 2020)
Working Papers
Abstract

This paper studies the gender compensation gap among high-level executives in US corpora-
tions. We use the ExecuComp data set that contains information on total compensation for the
top five highest paid executives of a large group of US firms over the period 1992-1997. About
2.5% of the executives in the sample are women. These women earn about 45% less than their
male counterparts. As much as 75% of this gap can be accounted for by the fact that women
manage smaller companies and are less likely to be CEO; Chair, or President of their company.
The unexplained gender gap can be reduced to less than 5% when one further accounts for the
fact that female executives are younger and have less seniority than male executives. Over the
period under study, women have nearly tripled their participation in the top executive ranks and
have also strongly improved their relative compensation, mostly by gaining representation into
the larger corporations. While the absence of a significant conditional gender gap implies that
women and men who hold similar jobs in firms of similar size receive fairly equal treatment in
terms of compensation, it does not rule out the possibility of discrimination in terms of gender
segregation or promotion.

Year of Publication
1999
Number
426
Date Published
10/1999
Publication Language
eng
Citation Key
Industrial and Labor Relations Review, Vol. 55, No. 1, October 2001
Hallock, K., & Bertrand, M. (1999). The Gender Gap in Top Corporate Jobs. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01ks65hc21s (Original work published October 1999)
Working Papers
Abstract

This paper investigates women's and men's labor supply to the firm
within a structural approach based on a dynamic model of new
monopsony. Using methods of survival analysis and a large linked
employer-employee dataset for Germany, we find that labor supply
elasticities are small (1.9-3.7) and that women's labor supply to the firm
is less elas~ic than men's (which is the reverse of gender differences in
labor supply usually found at the level of the market). Our results imply
that about one third of the gender pay gap might be wage discrimination
by profit-maximizing monopsonistic employers.

Year of Publication
2008
Number
541
Date Published
12/2008
Publication Language
eng
Citation Key
7899
Hirsch, B., Schank, T., & Schnabel, C. (2008). Gender Differences in Labor Supply to Monopsonistic Firms: An Empirical Analysis Using Linked Employer-Employee Data from Germany. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01gq67jr170 (Original work published December 2008)
Working Papers
Abstract

In this paper we study the long-term labor market implications of school resource equalization
before Brown and school desegregation after Brown. For cohorts born in the South in the 1920s and
1930s, we find that racial disparities in measurable school characteristics had a substantial influence on
black males’ earnings and educational attainment measured in 1970, albeit one that was smaller in the
later cohorts. When we examine the income of male workers in 1990, we find that southern-born blacks
who finished their schooling just before effective desegregation occurred in the South fared poorly
compared to southern-born blacks who followed behind them in school by just a few years.

Year of Publication
2005
Number
501
Date Published
05/2005
Publication Language
eng
Citation Key
7919
Ashenfelter, O., Collins, W., & Yoon, A. (2005). Evaluating the Role of Brown vs. Board of Education in School Equalization, Desegregation, and the Income of African Americans. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01ws859f65f (Original work published May 2005)
Working Papers
Abstract

Past investigations of the income gaps between Jews and non-Jews in
Israel treat non-Jews as one group. In this paper we separate the non-Jewish group into
three main religious minorities: Muslims, Christians and Druze and focus on the northern
part of Israel, where most minorities live. Using the latest Israeli census, we find
significant explained and unexplained income gaps in favor of Jews. The unexplained
gaps tend to be larger the more educated the individual. Jews have much higher
representation in the more lucrative occupations, and earn significantly more in them. In
almost every dimension Muslims suffer from the largest income gaps. Druze, on the other
hand, enjoy the lowest income gaps across most of the income distribution, due in large
part to direct and indirect benefits they reap from serving in the army. Among minorities,
Christians are the most educated and most concentrated in the top occupations, which
explains why they enjoy the lowest gaps in the highest percentiles of the income
distribution.

Year of Publication
2003
Number
476
Date Published
07/2003
Publication Language
eng
Citation Key
7999
Levanon, G., & Raviv, Y. (2003). Decomposing Wage Gaps Between Ethnic Groups: The Case of Israel. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01k0698749t (Original work published July 2003)
Working Papers
Author
Abstract

The Equal Employment Opportunity Act (EEOA) of 1972 extended civil rights coverage to
employers with l5-24 employees, while leaving unaffected the civil rights protection for employees of
larger finns. In conjunction with already existing state fair employment practice (FEP) laws, the EEOA
provides a “natural experiment” in which the treatment and control groups are defined by differences across
industries in the fraction of workers employed in the newly-covered establishments and across states in the
scope of the PEP laws. Using data from the Current Population Surveys, the treatment and control group
methodology is used to evaluate the impact of civil rights policy. This analysis shows that there were large
shifts in the employment and pay practices of the industries most affected by the amendment. The timing
of the relative gains and their concentration by industry and region provide evidence that the EEOA had a
positive impact on the labor market status of African-Americans.

Year of Publication
1995
Number
346
Date Published
08/1995
Publication Language
eng
Citation Key
Industrial and Labor Relations Review, Vol. 51, No. 4, July 1998
Chay, K. (1995). The Impact of Federal Civil Rights Policy on Black Economic Progress: Evidence From the Equal Employment Opportunity Act of 1972. Retrieved from http://arks.princeton.edu/ark:/88435/dsp019c67wm811 (Original work published August 1995)
Working Papers
Abstract

Discrimination against women has been alleged in hiring practices for many
occupations, but it is extremely difficult to demonstrate sex-biased hiring. A change in the
way symphony orchestras recruit musicians provides an unusual way to test for sex-biased
hiring. To overcome possible biases in hiring, most orchestras revised their audition policies
in the 1970s and 1980s. A major change involved the use of “blind” auditions with a
“screen” to conceal the identity of the candidate from the jury. Female musicians in the top
five symphony orchestras in the United States were less than 5% of all players in 1970 but are
25% today. We ask whether women were more likely to be advanced and/ or hired with the
use of “blind” auditions. Using data from actual auditions in an individual fixed-effects
framework, we find that the screen increases — by 50% — the probability a woman will be
advanced out of certain preliminary rounds. The screen also enhances, by severalfold, the
likelihood a female contestant will be the winner in the final round. Using data on orchestra
personnel, the switch to “blind” auditions can explain between 30% and 55% of the increase
in the proportion female among new hires and between 25% and 46% of the increase in the
percentage female in the orchestras since 1970.

Year of Publication
1997
Number
376
Date Published
01/1997
Publication Language
eng
Citation Key
The American Economic Review, Vol. 90, No. 4, September, 2000
Goldin, C., & Rouse, C. (1997). Orchestrating Impartiality: The Impact of ’Blind’ Auditions on Female Musicians. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01ns064602n (Original work published January 1997)
Working Papers
Author
Year of Publication
1994
Number
336
Date Published
09/1994
Publication Language
eng
Citation Key
American Economic Review, Vol. 95, No. 2, February, Vol. 85, No. 3, pp. 654-657
Hallock, K. (1994). Seniority and Monopsony in the Academic Labor Market: Comment. Retrieved from http://arks.princeton.edu/ark:/88435/dsp01z316q1591 (Original work published September 1994)
Working Papers
Abstract

Although The Economics of Discrimination has left a large schol
legacy. we believe the empirical methods associated with the study of
and sex discrimination have had a still larger impact on practical mat
Our purpose in this paper is to give some small insight into how this
scholarly literature has ended up as a major factor in the litigation
many civil disputes where race and sex discrimination are alleged.

Year of Publication
1987
Number
216
Date Published
01/1987
Publication Language
eng
Citation Key
American Economic Review, Vol.77, No. 2, May 1987
Ashenfelter, O., & Oaxaca, R. (1987). The Economics of Discrimination Thirty Years Later: Economists Enter the Courtroom. Retrieved from http://arks.princeton.edu/ark:/88435/dsp019019s2474 (Original work published January 1987)
Working Papers