Although Loury believes that racial discrimination, which he calls reward bias, still exists—for example, a white person gets paid a higher salary than a black person because of race—he is more concerned with development bias, whereby "the opportunity to acquire productivity is unequally available to the members of distinct racial groups." To further illustrate this point, Loury distinguishes between discrimination in contract and discrimination in contact. Discrimination in contract refers to discrimination in formal transactions, such as buying and selling property, or legalized discrimination, such as the Jim Crow laws. Discrimination in contact refers to discrimination in intimate, private spheres of life—where people choose to live and whom they associate with, fear, and despise. Essentially, Loury is saying that most Americans abhor discrimination in contract, which is less prevalent today than it used to be, but take for granted discrimination in contact, which creates a web of isolation and exclusion that creates disadvantages for African Americans.