Index

Adair v. United States, 99–100

Adarand Contractors, Inc. v. Pena, 116

Adkins v. Children’s Hospital, 38

Africa, 12, 145n5. See also South Africa

African hairstyling, 78

Alabama, 33, 94

Allgeyer v. Louisiana, 141

Allgood, Clayton, 34

ambiguity, language, 111–12, 120–21, 128–29, 162n2

American Federation of Labor (AFL), 32, 90–91, 103–4

Anderson, Bernard, 45

anti-Japanese land law, 14

apartheid era, 46–48

apprenticeship, 94–95

exams, 85

Arrow, Kenneth, 115

Asians, 12, 129, 130, 145n6

assortive selection, 114–15, 163n5, 163n6

auto insurance industry, 126–27

automation, myth about unemployment and, 55

banks, perceived racial discrimination of, 128–30

barbers, 60

baseball, 137, 138

basketball, 124

behavioral poverty, material v., 6–9

black(s)

becoming white, 123, 164n21

collusion participation of, 140–41

crime amongst whites v., 121–22

early 1900s unemployment rate for, 31–32, 32t, 36

economic achievement of, 5, 15–22

exclusion from trades, 83–109

licensing as tool for excluding, 83–85

1930s–1950s housing markets control by, 139

slave era, 15–22

unemployment statistics for, 41, 42t–43t

upward mobility problem of, 140, 141

use of government intervention against, 99–100

whites underbid by, 99

youth unemployment, 40, 41. See also race; workers; specific employment industries; specific topics

Brazier Construction Co., et al. V. Robert Reich, et al., 37

businessmen

as employers, 150n41

minimum wage supported by, 52–53

Cadillac effect, 79

cancer, 118

capital, substituting labor with, 55

capitalism, 83, 88

Card, David, 40, 41

Carroll, Sidney, 79

certificate of public convenience and necessity (CPCN), 65–66

certification

high school-equivalency test, 94

levels of, 80

union, 99–101

Chicago

number of black workers in, 1910, 90

taxicab operations in, 65

Chinese, in Southeast Asia, 12–13

Chinese Exclusion Act of 1882, 14

Civil Act of 1964, 106

Civil War, licensing of free blacks during, 27–28

collective bargaining agreements, 138

collusions, 136–38

blacks/whites supporting, 140–41

voluntary, 136

Community Reinvestment Act of 1977, 130

compensating differences, 49, 91, 140

competition

efficiency resulting from, 108

fears of black, 24, 89–91

housing market example of, 139–40

immigrants as, blacks facing, 24–25

impact of reduced, 81

licensing for protection from, 63, 73, 155n15

minimum wage to reduce, 48, 52–53, 57, 89

regulated, 67

violent response to black, 89–91

Constitution, Davis-Bacon Act and, 37–38

construction industry, 34, 36–37

consumer credit survey, 129–30

contracts, 120

yellow dog, 99–100

Coppage v. Kansas, 100

Cornwell v. California Board of Barbering and Cosmetology, 78

cosmetologists, licensing of, 75–76, 77

costs

approximating licensing, 155n15

capital relative to wage, 55

costly-to-observe attributes, 126

employer preference indulgence, 50–51, 150n42

entry, 75

information, 117

licensing as increasing service, 80–81

racial preference, 124

CPCN. See certificate of public convenience and necessity

credit, minority access to, 128–30

crime, 121–22, 132–33

racial profiling and, 121

Davis, James J., 33–34

Davis-Bacon Act, 32–38

DeBow, J. D. B., 17

Debs, Eugene V., 89, 99–100

Denver, taxicab operations in, 65–67

Department of Housing and Urban Development, U.S. (HUD), 36

Depository Institutions Deregulatory and Monetary Control Act, 130

deregulation, 106–8

taxi, 70–71

discrimination

employment, 125–28, 164n25

home mortgage, 128–30

against low-income shoppers, 132–33

operational definitions of, 113–15, 163n5, 163n6

diseases, race and, 119

Domino’s Pizza, 120–21

Dorsey, Stuart, 75–76

Douglass, Frederick, 3–4, 18, 25, 26

Dubois, W. E. B., 96

Durham, John Stephen, 86–87

earnings, 2008, 5

economic achievements

of blacks, 5, 15–22

of minorities, 13–15, 145n19

racial discrimination and, 13–15, 145n19

slave-era blacks’, 15–22

economic incentives, racial discrimination v., 10

economic theory

compensating differences, 49, 91, 140

intentions v. effects and, 3, 48–51, 56–57, 59–60

prediction ability of, 3

zero elasticity response in, 57, 155n77

education, 85, 102–3, 113, 125–26, 162n2

white v. black levels of, 46, 153n57

EEOC. See Equal Employment Opportunity Commission

effects v. intentions, 3, 48–51, 56–57, 59–60

electricity. See plumbing/electricity trade

employers

businessmen as, 150n41

higher-skilled labor substituted by, 46

incentives to experiment, 127–28

minimum wage cost to, 50–51, 150n42

preference indulgence of, 48–51

zero elasticity response of, 57, 155n77

employment

decline in black/trades, 87

discrimination, 125–28, 164n25

Fourteenth amendment right to, 141

-population ratio by race, 31, 32t

railroad, 95–100. See also youth, employment of

engineers, hiring requirements for, 102–3

England, racial discrimination in, 11

entry restrictions, 59, 61, 63, 68, 75, 155n15

New Deal raising of, 93

racial discrimination not explaining, 109

Equal Employment Opportunity Commission (EEOC), 94

equal starting wages, 127–28

equal-pay-for-equal work, 48–51, 96, 154n69, 160n68

ethnic conflict, 12–13, 145n5, 145n6, 145n9

ethnic groups, politically successful, 14–15

exams

apprenticeship, 85

firemen promotion, 102–3

licensing and, 76

pass rates, 95

exclusive bargaining representation, 101

Fair Labor Standards Act (FLSA), 38, 93

family structure, 1880s v. today’s blacks’, 7–8

farmers, minimum wage and, 52–53

fast-food restaurant study, 40–41

Federal Housing Administration, 130–31

Federal Trade Commission (FTC), 132

female-headed households, 7

firemen, 95, 97t, 96, 102–3

FLSA. See Fair Labor Standards Act

football, 124, 137–38

foreclosure, 131

Fourteenth Amendment, 67, 141

Freddie Mac, 129

free blacks, 16–17, 22–23, 27–28

in North, 22–27

quasi-, 19, 21

free market, 137

as colorblind, 28–29

as friend to blacks, 9–10

paying for preferences in, 124

prices/competition and, 63

resource allocation, 1–2

Galloway, Lowell, 32, 36

Garrison, William Lloyd, 25

Garvey, Marcus, 88

genocide, in Rwanda, 12, 145n9

Gompers, Samuel, 103–4

government intervention

blacks workers excluded through, 99–100

collusions and, 137

entry into occupation, 59, 61, 63, 68, 93, 155n15

1930–1950 rise in, 36

Greene, Lorenzo, 84

Gross Domestic Product (GDP), 6t

Ireland’s, 70

Gutman, Herbert, 8

gypsy cabs, 63–65

Haas Act of 1937, 62

hair braiding, 77–78, 157n40

Haiti, migration and, 27

Hardie, Keir, 47–48

Harvard University Civil Rights Project, 112

Higgs, Robert, 31

Hill, Herbert, 87

Hispanics, home ownership of, 130

home mortgages, 128–30

home ownership, 130

homogeneity, racial, 112–13

households, single-parent, 7

housing markets, 139–40

Houston, Charles, 103

HUD. See Department of Housing and Urban Development, U.S.

illegitimacy, 8

immigration

Chinese, 103–4

competition from, 24–25

early 1900s, 34–35

In re Debs, 99–100

income

discrimination against shoppers with low, 132–33

equal distribution of, 46

non-money, 50

prices and, 135

total earnings of blacks in 2008, 5

understated, 7

inflation, 55

information

cost of gathering enough, 117

decisions and, 126

physical attributes as, 126–27

Institute for Justice, 37, 67, 72, 77, 79

intentions, effects v., 3, 48–51, 56–57, 59–60

Interstate Commerce Commission (ICC), 107–8, 109

IQ

assortive mate selection and, 114–15

racial profiling and, 123

Ireland, taxi licensing/deregulation in, 70–71

Irish Americans, 14–15, 25

iron industry, 86

Jackson, Jesse, 121–22, 128

Japanese Americans, 14

Jews, 1930s citizenship law and, 79–80

jitney services, 71–72

job-reservation laws, South Africa, 47–48, 134

Johnson, James Weldon, 86, 88

Kennedy, John F., 52

Krueger, Alan B., 40, 41

labor, 38

acquiring marketable skills, 150n43

adjustments in use of, 39, 150n41

low/high-skilled, 34, 40, 46, 51–52, 54, 58

machines replacing, 46

marginal/youth, 39–40, 150n43

as monopolies, 93, 101

participation by race/age, 41, 44t–45t

substituting capital for, 55

labor market

myths about, 53–56

opportunities, 45

land acquisition, 14, 16

Landers, Monique, 77–78, 157n40

law of demand, 49–50, 54

Leroy Jones et al. v. Colorado Public Utilities commission, 67

liberalism, 115, 153n60

licensing, occupational, 59–81, 155n1

approximating price of, 155n15

board of commissioners, 60

certification and, 80

competition and, 63, 73, 155n15

cosmetologists, 75–76, 77

incumbent practitioners as beneficiaries of, 61, 76, 79–80, 95

intention v. effect of, 59–60

jitney services, 71–72

Landers case, 77–78, 157n40

1930s citizenship law and, 79–80

quality of services and, 80–81

racial discrimination by, 75, 83–85, 94–95

stated justifications for, 59

strategy of exclusion, 83–85

taxicab, New York City’s, 62–63

violation penalties in, 60

youth suffering from abuses by, 81

life chances, racial identification and, 115

life insurance, perceived discrimination in, 126–27, 164n25

loan applications, 128–30

Mac, Freddie, 129

Macarty, Cecee, 17

Malaysia, 13

market

housing, 139–40. See also free market; labor market

material poverty, behavioral v., 6–9

Mau Mau, 145n5

Maurizi, Alex, 95

medallion system, 62–63, 140

merchant behavior, crime and, 132–33

Mexico, 53

migration

blacks’ option of, 27

Jewish, 79–80

minimum wage, 9, 55–56

acquiring marketable skills with, 150n43

business interests in support of, 52–53

competition reduced by, 48, 52–53, 57, 89

Davis-Bacon Act, 32–38

determinations of, 35–36

economic theory and, 45–46

effects of, 38–46, 150n41, 150n42, 150n43

effects v. intentions behind, 48–51, 56–57

history of, 38

impetus for federal law on, 33–34

myth of antipoverty weapon as, 55

NRA setting, 91

on-the-job training impacted by, 39, 48, 57, 150n43

racial discrimination and, 46–49

recent three-step increase in hourly, 38

South Africa and, 46–48

studies on, 40–41

unemployment statistics and, 42t–43t

U.S. unions as supporting, 51–52, 154n71

victims of, invisible, 57–58

worker productivity and, 150n41

zero elasticity of response and, 57, 155n77

Minneapolis, taxi industry in, 68

minorities, racial

artificial disqualification of, 54

banks owned by, 130

Chinese, 12–13

credit access of, 130

deregulation as help to, 108–9

economic progress of, 13–15, 145n19

equal-pay-for-equal work as handicap to, 96, 160n68

free-market and, 1–2

home ownership, 130

licensing as handicap to, 79, 95

loan applications and, 129–30

taxi cab industry and, 65

trucking industry carriers owned by, 107t

as union members, 154n71

monopolies

cosmetologist, 75–76

entrepreneurial response to, 63–65

labor unions as, 93, 101

taxi cab industry, 62–71, 140

transportation, 71–72, 74

Washington, D.C.’s stand against, 69–70

mortgages, home, 128–30

subprime, 130–31

Motor Carrier Act of 1980, 108

Myrdal, Gunnar, 93

Myth and Measurement: The New Economics of the Minimum Wage, 40

myths, labor market, 53–56

National Association for the Advancement of Colored People (NAACP), 67, 91

National Mediation Board (NMB), 100

National Recovery Act (NRA), 91, 92

net worth, 128–29

Neumark, David, 41

New Deal, 32, 91–93, 100–103

New Jersey, fast-food restaurant study in, 40–41

New Orleans, free blacks in, 16–17, 27

New York City

gypsy cabs in, 63–65

taxicab licensing in, 62–63

van services in, 72–74

NMB. See National Mediation Board

North, free blacks in, 22–27

North American Free Trade Agreement, 53

NRA. See National Recovery Act

on-the-job training, 39, 48, 57, 150n43

Orientals, AFL discrimination against, 103–4

paired testing, 125–26

Papa John’s, 121

Peckham, Rufus W., 141

people

licensing laws as anti-, 140

prejudging, 118–19

Philadelphia, 22–24

taxicab operations in, 65

photographers, 60

physical attributes, nonracial use of, 126–27

planters, failed collusions of, 136–37

plumbing/electricity trade, 83–85, 87

black opportunity in today’s, 94–95

policy

compassionate, 56

intentions v. effects of, 3, 48–51, 56–57, 59–60

prejudice misdiagnosis and, 131

political success, Irish economic problems coexistence with, 14–15

politics, free-market resource allocation v., 1–2

poor families’, work experience of, 8–9

population

racial segregation and, 111–12

ratio of employment-, 31, 32t

Potato King, Negro, 27

poverty

census bureau definition of, 6

material v. behavioral, 6–9

minimum wage as anti-, myth of, 55

money measures of, 7

racial discrimination as not linked to, 9

practitioners, incumbent, 61, 76, 79–80, 95

preference, 135

indulgence, 48–51, 118, 123–24, 150n42

intensity, 2

moral dimension of, 123–24

racial, 122–24

prejudging, people, 118–19

prejudice, misdiagnosed, 131

prejudice, operational definition of, 116–18

prevailing wages. See minimum wage

price-setting, 49, 139

productivity, worker

equal-pay-for-equal work and, 48–49

minimum wage and, 150n41

racial discrimination and, 48–49, 125, 127, 150n41

public health, as licensing justification, 77

Public Utilities commission (PUC), 65–66

public works projects, early 1900s regulations on, 33–35

Pullman strike of 1894, 89, 90

qualifications, artificial, 54

quality levels, 80

quasi-free blacks, 19, 21

quotas, racial, 98–99, 108

race

disease and, 119

employment-population ratio by, 31, 32t

labor force participation by age and, 41, 44t–45t

terminology and, 111–34, 162n2, 163n5, 163n6

unemployment statistics by, 41, 42t–43t

wage regulations and, 31–58. See also minorities, racial

race riots, 89

racial discrimination

ambiguous language of, 111–12, 120–21, 128–29, 162n2

against Asians, 12, 145n6

banks’ perceived, 128–30

college entrance testing and, 125–26

collusions based on, failure of, 136–38

colorblind markets and, 28–29

economic incentives v., 10

economic progress and, 13–15, 145n19

examples of widespread, 11–12, 145n5, 145n9

laws as providing incentives for, 48–49

licensing as means of, 75, 83–85, 94–95

minimum wage and, 46–49

New Deal acceptance of, 92

1940s unions and, 102–3

poverty as not related to, 9

worker productivity and, 48–49, 125, 127, 150n41. See also discrimination

racial preferences, 122–24

racial profiling, 119–22

racial segregation

ambiguity of term, 111–13, 162n2

union, 92

railroad industry, 95–100, 138

New Deal impact on blacks in, 100–103

Railway Labor Act of 1926 (RLA), 100, 102, 138

Reconstruction era, collusions during, 136–37

redlining, 131

“A Register of Trades of Colored People in the City of Philadelphia and Districts,” 22

regulations

anti-people, 140

against black slave entrepreneurship, 20–22

competition with, 67

Davis-Bacon Act, 32–38

early 1900s public works projects, 33–35

equal-pay-for-equal work, 48–51, 154n69

immigration, 34–35

racial discrimination incentives from, 48–49

wage, 31–58, 98. See also minimum wage

representation, exclusive bargaining, 101

riots, race, 89

RLA. See Railway Labor Act of 1926

Rwanda, genocide in, 12, 145n9

Santos, Alfred, 71–72

Scholastic Aptitude Test (SAT), 125, 126

schools

perceived racial segregation in, 113

political parceling of, 2

segregation. See racial segregation

sickle-cell disease, 119

SIME / DIME. See Seattle / Denver Income Maintenance Experiment

single-parent households, 7

skills, 34, 40

acquiring marketable, 150n43

minimum wage and, 51–52, 58

qualifications and, 54

substitution of higher for lower, 46

unemployment as not linked to, 54

slaves / slavery

economic achievements of blacks during, 15–22

self-hire of, 15, 18–22

Social Security Act, 36

South

1800s, 86–87

1900s, 96

South Africa, 11–12, 46–48, 134, 145n5, 153n60

Southeast Asia, Chinese in, 12–13

Southeastern Carrier’s Agreement, 101–102

steak analogy, 49–50

Steele v. Louisville & Nashville Railroad, 101, 102

stereotyping, 117

strikes, railroad, 96–99

strikebreaking, 88–91, 93

subprime mortgages, 130–31

supermarkets, worker productivity and, 127

Supreme Court, U.S.

Davis-Bacon constitutionality rulings of, 37–38

jitney services ruling of, 72

Lochner era / “old,” 91

NRA rulings by, 92

racial discrimination laws upheld by, 14

railroad unions thwarted by early, 99–100

right to work interpretation by, 141

RLA rulings by, 102

Wagner Act upheld by “new,” 92

yellow-dog contracts outlawed by, 99–100

sweatshop jobs, 58

task system, 18

tavern licenses, 28

taxi cab industry, 62–71, 140

denied entry into, 68

foreign deregulation of, 70–71

in major cities, 65–67

race and, 65

racial profiling accusation in, 120

terminology, racial, 111–34, 162n2, 164n25

operational definition of discrimination in, 113–15, 163n5, 163n6

prejudice in, 116–18

racial preferences, 122–24

racial profiling, 119–22

racial segregation and, 111–13, 162n2

tests

high school-equivalency, 94

racial gap in college entrance, 125–26

Tillman, Ben (“Pitchfork”), 89

Tillman, Oscar S., 67

A Touch of Class, 77–78

trades, 22

black exclusion from, 83–109

training, on-the-job, 39, 48, 57, 150n43

transportation monopolies, 71–72, 74

trucking industry, 105–6

deregulation, 106–8

minority-owned common carriers, 107t

unemployment

automation and, 55

early 1900s black, 31–32, 32t, 36

Japanese Americans, 14

myth about skills and, 54

rise of black, 36

statistics on, 41, 42t–43t

youth, 40, 41

unions, 25

black exclusion from, 86–89, 95

certification by, U.S. Supreme Court on, 100–101

as collusions, 137

electrical apprenticeships sponsored by, 94–95

licensing used by, 84–85

minimum wage support from, 51–52, 154n71

1940s subtle discriminatory techniques of, 102–3

number of practitioners set by, 61

racial segregation in, 92

railroad, 96, 98–100

South Africa’s racist, 46–48, 153n60

taxicab, 69

trucking, 105–6

van services opposed by, 72–74

United States (U.S.), employment-population ratio by race for, 31, 32t

United Transport Service Employees of America (UTSEA), 101

van services, New York City’s licensing of, 72–74

Vedder, Richard, 32, 36

Village of Arlington Heights v. Metropolitan Housing Development Corporation, 37

violence

black / white labor, 89–91

1911 strike and, 99

unions use of, 137

Virginia, slave era, 26

wages

capital costs relative to, 55

equal starting, 127–28

right to lower, 91

Wagner Act, 92–93, 138

Washington, Booker T., 89

Washington, D.C., taxicab industry in, 68–70

Washington Lawyers committee, 119–20

welfare programs, 8–9, 52

West Coast Hotel v. Parrish, 38

whites

blacks becoming, 123, 164n21

collusions supported equally by blacks , 140–41

crime amongst blacks v., 121–22

education levels of blacks v., 46, 153n57

net worth of blacks v., 128–29

Wilkins, Roy, 91

Woodson, Carter G., 84

work experience, poor families’, 8–9

workers

Chicago’s 1910 number of black, 90

government used to exclude black, 99–100

hiring most productive, 48–49

low / high-skilled, 34, 40, 46, 51–52, 54, 58

minimum wage, percentages for, 55–56

New Deal impact on black, 91–93

political arguments of highly-skilled, 51

productivity, 48–49, 125, 127, 150n41

yellow dog contracts, 99–100

youth, employment of, 39–40, 77–78, 81, 150n43

educational attainment and, 46, 153n57

myth about, 53–54