I don't care whether or not the example also qualifies as "institutional racism" or how many obscure academic texts you cite. The institution is only one small

I don't care whether or not the example also qualifies as "institutional racism" or how many obscure academic texts you cite. The institution is only one small part of the power structures that enforce the resulting behavior. In Frankfurt School critical theory, the largest structures in this case would be capitalism and the capitalist state (monopoly on violence). Of course, the state dictates the priorities of its institutions.