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

Johan Willner*

*Corresponding author for this work

    Research output: Contribution to journalArticleScientificpeer-review


    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
    Issue number2
    Publication statusPublished - Jun 1994
    MoE publication typeA1 Journal article-refereed


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