Bus drivers were twice as willing to let white testers ride free as black testers (72% vs. 36% of the time); signals of wealth and patriotism improve minority testers’ outcomes

The Colour of a Free Ride. Redzo Mujcic, Paul Frijters. The Economic Journal, ueaa090, September 2 2020. https://doi.org/10.1093/ej/ueaa090

Abstract: We use a natural field experiment to estimate the causal effect of race on discretionary favours in the marketplace. Test customers are randomly assigned to board public buses with no money to purchase a fare, leaving the bus driver to voluntarily decide whether to offer them a free ride. Based on 1,552 transactions, we uncover strong evidence of racial bias: bus drivers were twice as willing to let white testers ride free as black testers (72% vs. 36% of the time). Signals of wealth and patriotism improve minority testers’ outcomes. Our results show that white privilege extends to unregulated daily interactions.

JEL C93 - Field ExperimentsJ15 - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination