Arbitraging a Discriminatory Labor Market: Black Workers at the Ford Motor Company, 19181947

A-Tier
Journal: Journal of Labor Economics
Year: 2003
Volume: 21
Issue: 3
Pages: 493-532

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The 191847 employee records of the Ford Motor Company provide a rare opportunity to study a firm willing to hire black workers when similar firms would not. The evidence suggests that Ford did profit from discrimination elsewhere, but not by paying blacks less than whites. An apparent "wage-equity constraint" prevailed, resulting in virtually no racial variation in wages inside Ford. An implication was that blacks quit Ford jobs less often than whites, holding working conditions constant. Arbitrage profit came from exploiting this nonwage margin, as Ford placed blacks in hot, dangerous foundry jobs where quit rates were generally high.

Technical Details

RePEc Handle
repec:ucp:jlabec:v:21:y:2003:i:3:p:493-532
Journal Field
Labor
Author Count
3
Added to Database
2026-01-25