We discuss research on discrimination against blacks and other racial minorities in labor market outcomes, highlighting fundamental challenges faced by empirical work in this area. Specifically, for work devoted to measuring whether and how much discrimination exists, we discuss how the absence...

We test the predictions from Becker's (1957) seminal work on employer prejudice and find that relative black wages (a) vary negatively with the prejudice of the "marginal" white in a state, (b) vary negatively with the prejudice in the lower tail of the prejudice distribution but are unaffected...