Artikel

Local labor markets and taste-based discrimination

This article appeals to heterogeneity in workers' non-wage preferences to model taste-based discrimination. Firms hire both types of workers and pay lower wages to minority workers, whatever their taste for discrimination. A single prejudiced firm in the market produces a substantial wage gap in all firms. Consequently, discrimination allows unprejudiced firms to make non-zero profits, so that they have little incentive to drive out prejudiced firms. As the market does not eliminate discrimination, state intervention is required. Indirect policies do not affect the absolute wage gap between the two groups, but may be more likely to be used than direct policies.

Sprache
Englisch

Erschienen in
Journal: IZA Journal of Labor Economics ; ISSN: 2193-8997 ; Volume: 5 ; Year: 2016 ; Issue: 5 ; Pages: 1-29 ; Heidelberg: Springer

Klassifikation
Wirtschaft
Monopsony; Segmented Labor Markets
Labor Discrimination
Oligopoly and Other Imperfect Markets
Thema
Discrimination
Oligopsony
Wage gap

Ereignis
Geistige Schöpfung
(wer)
Berson, Clémence
Ereignis
Veröffentlichung
(wer)
Springer
(wo)
Heidelberg
(wann)
2016

DOI
doi:10.1186/s40172-016-0045-9
Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Artikel

Beteiligte

  • Berson, Clémence
  • Springer

Entstanden

  • 2016

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