Does Becker Know Best?

Authors

Matthew Butler, Brigham Young University
Dr. Eric Eide, Brigham Young University

Keywords

racial discrimination, labor market, Gary Becker, Economics of Discrimination

College

Family, Home, and Social Sciences

Department

Economics

Abstract

Most economists contend that racial discrimination cannot exist in a “free” labor market because competition will drive any firm that discriminates to bankruptcy. This contention is presented, perhaps most famously, in Gary Becker’s book the “Economics of Discrimination.” The question of whether Becker, and all economists, knows best is relevant because if “free” labor markets do work towards eliminating discrimination, the policy implications are for the government to take a laissez-faire stance towards regulating discrimination-to step back, and to simply allow the market to correct itself. The NBA provides a natural experiment to test whether or not “free” labor markets, or institutional changes towards a more “free” labor market, can help eliminate racial discrimination.

Recommended Citation

Butler, Matthew and Eide, Dr. Eric (2014) "Does Becker Know Best?," Journal of Undergraduate Research: Vol. 2014: Iss. 1, Article 176.
Available at: https://scholarsarchive.byu.edu/jur/vol2014/iss1/176