Discrimination, Segregation, Integration, and Expropriation
- (pp. 239-43)
Abstract
I look at simple models of segregation and integration in a regional economy using a standard Cobb-Douglas production function and show that White capital does better in integration and White labor does better in segregation. I suggest that White capital and labor can resolve this difference in interests by integrating Black labor and expropriating some of the wages of these Black workers. I then introduce the third production factor of human capital, where the ethnic groups have different access to resources for human capital development. I show that this can lead to outcomes very similar to the expropriation model. Both the expropriation and limited human capital models appear to match available data for some US labor markets in the 1865−1965 period.Citation
Williams, Geoffrey Fain. 2022. "Discrimination, Segregation, Integration, and Expropriation." AEA Papers and Proceedings, 112: 239-43. DOI: 10.1257/pandp.20221102Additional Materials
JEL Classification
- J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 Wage Level and Structure; Wage Differentials
- N31 Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: U.S.; Canada: Pre-1913
- N32 Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: U.S.; Canada: 1913-
- R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics