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