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Cited by 824Names, Identity, and Discrimination ResearchLabor market dynamics and wage inequalityLabour Market and Migration

Detecting Discrimination

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Heckman, James J·1998·Journal of Economic Perspectives
DOI 10.1257/jep.12.2.101
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Abstract

The evidence on discrimination produced from the audit method is examined. Audits survey the average firm and not the marginal firm which determines the level of market discrimination. Taken on its own terms, there is little evidence of labor market discrimination from audit methods. The validity of audit methods is critically dependent on unverified assumptions about equality across race/gender groups of the distributions of unobserved (by audit designers) productivity components acted on by firms and about the way labor markets work. Audits can find discrimination when none exists and can disguise it when it does.

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  • Heckman argued that most 1990s black-white earnings disparity was due to skills brought to the market, not labor market discrimination, and described labor market discrimination as a problem of an earlier era.

    “Heckman (1998:101–102) puts the point most clearly, writing that “most of the disparity in earnings between blacks and whites in the labor market of the 1990s is due to differences in skills they bring to the market, and not to discrimination within the labor market.””

    From Discrimination in a Low-Wage Labor Market: A Field Experiment (2009) · cites this paper as Heckman 1998

  • Perfectly matching audit partners on hiring-relevant characteristics can distort hiring by forcing employers to use minor characteristics to break ties.

    “Ironically, however, achieving perfect matches can itself produce distortions in the hiring process. Because audit partners are matched on all characteristics that are most directly relevant to hiring decisions (e.g., education, work experience, and physical attributes), employers may be forced to privilege relatively minor characteristics simply out of necessity to break a tie (Heckman 1998:111).”

    From Discrimination in a Low-Wage Labor Market: A Field Experiment (2009) · cites this paper as Heckman 1998:111

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Cited by

Sorted by citations

Authors
Heckman, J. J.
Affiliations
American Bar Foundation (US)
Corresponding author
Heckman, James J
ORCID
Heckman, James J
Venue
Journal of Economic Perspectives
Publisher
American Economic Association
Published
1998-05-01
Volume
12
Issue
2
Pages
101-116
ISSN
0895-3309 (ISSN-L)
DOI
10.1257/jep.12.2.101
OpenAlex
W4251381017
Cited by
824
References
0
Citations by year
2026: 14 · 2025: 35 · 2024: 48 · 2023: 42 · 2022: 46 · 2021: 42 · 2020: 53 · 2019: 39 · 2018: 61 · 2017: 51 · 2016: 37 · 2015: 38 · 2014: 30 · 2013: 35 · 2012: 34
FWCI
34.91
Type
journal article
Language
en
Open access
Locations
  • The Journal of Economic Perspectives (publishedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
Topics
  • Social Sciences › Sociology and Political Science › Names, Identity, and Discrimination Research
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
  • Social Sciences › Gender Studies › Labour Market and Migration
Keywords
labor market discrimination, job applications, racial discrimination, gender discrimination, unobserved heterogeneity, market discrimination, measurement validity

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