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The Supply Side of Discrimination: Evidence from the Labor Supply of Boston Taxi Drivers

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Document pages: 76 pages

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.

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