Discrimination under imperfect competition - a way of earning or wasting money?

Johan Willner*

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

Abstract

How would firms allocate their employees between two differently paid jobs? Suppose that a number of equally skilled workers belonging to two distinguishable groups are competent enough for both positions. It is then profitable to employ the group with the higher labour supply elasticity in the high wage occupation. This explains why less wealthy groups are discriminated against, but it suggests that discrimination of women may be a waste from the standpoint of the employer in an important category of cases.

Original languageEnglish
Pages (from-to)197-209
Number of pages13
JournalInternational Journal of Industrial Organization
Volume12
Issue number2
DOIs
Publication statusPublished - Jun 1994
MoE publication typeA1 Journal article-refereed

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