The Labor Market Effects of Sex and Race Discrimination Laws

We study the effects of state sex and race discrimination laws that were passed prior to federal antidiscrimination legislation. State sex discrimination laws targeted discrimination in pay only. Because an equal pay constraint raises the relative price of female labor, we would expect the relative employment of females to decline. We find robust evidence that state equal pay laws for women reduced relative employment of both black women and white women. We also find some evidence of positive effects of race discrimination laws on earnings of blacks relative to whites, although no evidence of employment effects. (JEL J15, J16, J18, J23) Copyright 2006, Oxford University Press.