Working Paper
The supply side of discrimination: evidence from the labor supply of Boston taxi drivers
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.
Keywords: discrimination; labor supply; Boston taxis; wage elasticity;
JEL Classification: J22; J31; J71; L91;
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Bibliographic Information
Provider: Federal Reserve Bank of Boston
Part of Series: Working Papers
Publication Date: 2018-06-01
Number: 18-2
Pages: 68 pages