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Local labor markets and taste-based discrimination
- Source :
- IZA Journal of Labor Economics, Vol 5, Iss 1, Pp 1-21 (2016)
- Publication Year :
- 2016
- Publisher :
- Walter de Gruyter GmbH, 2016.
-
Abstract
- 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.
- Subjects :
- Organizational Behavior and Human Resource Management
Economics and Econometrics
Labour economics
media_common.quotation_subject
Labor. Work. Working class
Wage
Economic growth, development, planning
Affect (psychology)
Wage gap
Discrimination
0502 economics and business
ddc:330
Oligopsony
Economics
050207 economics
J71
media_common
L13
050208 finance
Taste (sociology)
05 social sciences
HD4801-8943
Intervention (law)
Incentive
Industrial relations
HD72-88
J42
Subjects
Details
- ISSN :
- 21938997
- Volume :
- 5
- Database :
- OpenAIRE
- Journal :
- IZA Journal of Labor Economics
- Accession number :
- edsair.doi.dedup.....300bd93db25fe8a7f742240e4e1a36cf
- Full Text :
- https://doi.org/10.1186/s40172-016-0045-9