the short explanation: Economists distinguish between statistical discrimination and actual discimination.
Statistical discrimination is when employers tend not to hire black because on average blacks might have unobservable traits that lead to lower productivity, for example if blacks with high school degrees tend to have gone to worse high schools than whites and therefore have lower skills employers would realize this and tend not to employ them. Though it has the same effect as true racial animosity it has a different cause.

Add to this the similar study that found that fictititious applicants were more likely to get an interview, other things being exactly equal, if they were white and had a felony conviction than if they were black and had no criminal record.

BTW, I think the difference between "prejudice" and "perception that race signals lower productivity" is a non-literal use of the term "prejudice." If you use it to mean literally pre-judging someone on the basis of an apparently irrelevant characteristic, than assuming black people have lower productivity is clearly "prejudice." But here, the writer may be using it to mean something like "holding personal animosity towards black people." In other words, the employer may be making factual assumptions about whether black employees are as good as white employees--"preconceptions," in the writer's terminology--or the employer may just not want to hire black folks because he/she doesn't like them--"prejudice," as this writer uses it.

Either way, it's a horrible fact. Reminds me of when I was a California high-school student and George Deukmejian defeated Tom Bradley in the governor's race by a very thin margin (something like 50.5%-49.5%), and the percentage of voters who admitted to exit pollsters that they voted against Bradley because he was black was more than enough to swing the election (something like 3% or 5% in my recollection). I was appalled, not only at the fact that our governor-elect was going to become governor because of out-and-out racism, but also because the press didn't seem to think that was remarkable enough to write about. Same thing will happen with this story; white folks who are against affirmative action have way too much wrapped up in believing that racism is a thing of the past to allow pesky facts to get in the way.

p

By "this just in", you mean "the NBER has finally gotten around to discussing a paper that was published last December", right?

This is old news, however neglected and underreported.

publius and caldem both make good points.

You're right, billmon, that it is a strong argument for affirmative action.

The sad thing for me is that this result (of this survey) is so completely predictable.

Billmon
I have always felt that affirmative action was necessary just to even out this very effect. If all other things are equal a hiring process dominated by caucasians is going to favor other caucasians unless some mechanism is in place to prevent or statistically compensate for this predictable human behavior.

Maybe this is my problem. As someone that has many applications out there, and I do have a black last name, I am getting nowhere and my letters of recommendation are awesome.

When my daughter moved to the great "OC", after living in a predominately black neighborhood, she had problems enrolling her son over the phone at the closest elementary school. Her son has a black/jewish first name and her last name is jewish, and she does sound black on the phone. She contacted the superindendant and eventually enrolled her son in another school. She did make an appearance at the first school, (she looks swedish), and said the Secretary turned white when she gave her name, I am Mrs. __________.

The distinction the authors seek to make is between statistical discrimination and discrimination based on racial preferences. The wording is awkward.

As someone above mentioned, statistical discrimination occurs when employers use race as a proxy for an unobserved variable that affects productivity.

Discrimination based on racial preferences occurs when employers dislike African Americans and prefer to hire whites. There is no "business reason" per se of this decision, just personal preference.

The discriminatory actions in both case are illegal.

I don't think it was an interesting observation to note that the motivation for the discrimination is unknown. The point of the study is that discrimination still has a substantial influence the labor market for entry level jobs. The methodology doesn’t illuminate the motivations of the employers.

Last time in SF, when visiting some of my old musician friends, they went up the Nappa to play a wedding (They are world class musicians, but Weddings and Parties help with the rent)
So, I met Ms. ----, who is a spitting Aretha Franklin stand in, including the voice. There is a recess in the ceremony, and I sit alone with Ms.---- behind the barn in the musician holding area (so to speak), and I just drill her on growing up in the South, learning singing in a Babtist Church Choir, the marches in the 60's, Martin Luther King, modern racism, etc, and we have so much fun together.

Suddenly, the Caterer huffs up to us and barks: "You can't smoke pot here, we don't allow it anymore!"

Ms.---- and I just look at each other - we don't toke. Makes both of us paranoid. Neither do we smell anything, and hence, are just dumbfondled. "Sorry, man, we don't smoke that stuff."

Of course, Ms.---- is the only non-white in circumference to the horizon, and Caterer man did never ask anyone else.

Couple minutes later, it turns out, it's the Groom, Bride, Best Man, Brides Maids in a group of 20ies or so in the parking lot toking it up like chimneys.
Cater man never approached them.
Didn't apologize directly either, but at the end of the day, when we were packing up, he came running over and offered us several bottles of really fine Merlot:
"Here, they are, uhmm, left over".
We thanked him nicely. Whadda ya say, he got the point himself, and tried to make amends.

Cater Man is of course the type of guy who offers these type of entry positions that are mentioned in the 'Economic Research'.

[Shameless Plug - please, if you are in the Bay Area and need a high quality, no worries solution for your event, consider my friends]

The statistical vs. "actual" discrimination distinction doesn't really work here. Billmon is right that in the context of this study, it isn't clear how the discrimination could be anything other than racial/"real". This is because the resume's were identical. Same school, same recommendations, same everything but name.

Unless they had access to statistical information that those with black-sounding names are actually worse at their jobs than those with white-sounding names despite identical records of achievement, then this is can only be old-fashioned racial bias.

Somehow I don't think these statistics were available to the hiring managers.

The solution, of course, is to provide your children with race-neutral names like 'Dweezil' or 'Moon Unit'

The "OC" is a f**ked up place. Its rife with racism and class superiority. I know some friends of the family who moved from the Mojave Desert to OC - mind you the couple in question are old & white, to be with their grandkids.

Well almost two months later they have not made any friends in OC. The problem is due to them not being of the same social class as most "OC" folks. IOW they look down at people who don't have the same background and income level as they do.

Yeah class based discrimination is alive and well too. Along with age discrimination. Except neither gets any play. If you're over 40 you might as well not exist in this country.

O'Yeah a quota system could fix it. Cept it would have to be mandatory for all businesses and institutions. The businesses would either comply or have their corporate charter revoked(business death sentence) and its assets seized.

Wall Street sure could use a dose of it. Nothing but a pack sociopathic white blue bloods.

I feel your pain,
and when I lived in El Toro, OC, in the mid 80's with my first ex-wife and powerwalked around hills, along the walled and gated voluntary Concentration Camps, (well, yea, studded leather, multicoloured asymetric Dreadlocks), Coppers would stop all the time, asking me where my car was. Well, I didn't have a car. I am certain, only my eloquent way of playing naive saved me from getting beaten up or worse each time.
(That, and being tall, blonde and blue-eyed while featuring a comical german accent)

However, mandated correctness can never be an answer to anything. (Today we win, tomorrow we suffer big-time)

The only solution is education, education, education!
That the neo con artists know, and thus they will leave every kid that can't go to private school behind.

Well, let's be artistic, creative, compassionate and fair, with all humans we encounter, everyday anew.
That is, where the neo con artists can never beat us.
And a so very secular: love is stronger than hate.

Peace and love,
Werner

I think, I just articulated my mantra.

Too bad, noone will ever read this.

I have read it :-)

Love
Karl Heinz

Hamburg, Germany

Roger

Just read your post. You said it!! The new "drama", "The OC" is pretty realistic of the white areas - we do have our ghettos too, however.

It is all about age, beauty, color, and money.

Went to a party at my neighbor next door, (they are very wealthy). They have a spa, ground level, which they painted black, set in black tile around, close to their patio door. An older gentleman stepped into the spa, fell flat across on the cement on the other edge. He just layed there face down. The hostess, who was talking in the group I was with, stopped, looked and said, "Who is it?" **** "Oh" **** went off and joined some other people and continued talking. Some of his friends assisted him. I left. Unreal. That's the OC