Labor mobility and racial discrimination

We examine the effect of labor mobility constraints on racial wage discrimination. show that when monopsony power is low because relaxed constraints, firms cannot act their prejudice and discrimination disappears. This prediction taken to data by using an exogenous shock European football market. The Bosman ruling lifted restrictions player in 1995. Exploiting differences a panel top English clubs, we compare pre- post-Bosman find evidence disappears only for workers whose have been lifted.