The Supply Side of Discrimination?

Abstract

This paper investigates the possibility of 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 considered. I observe heterogeneity in driver behavior and find suggestive evidence of discrimination that is primarily statistical rather than taste-based. As drivers gain experience and learn to better anticipate wage variation, potential discrimination decreases.