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Competition and Wage Discrimination: The Effects of Interindustry Concentration and Import Penetration

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  • Jacqueline Agesa
  • Darrick Hamilton

Abstract

Objective. Economic theory suggests that competition reduces employers' latitude to engage in wage discrimination (Becker, 1957). This study investigates the impact of foreign and domestic competition on wage discrimination. Method. Utilizing the sample of males in U.S. manufacturing industries from the 1990 Public Use Micro Sample (PUMS), industry wage equations are estimated. In a second stage, the impact of domestic and foreign competition on racial wage disparity is assessed. Results. We find little evidence to support our hypothesis. Conclusions. Notwithstanding, the failure of conventional economic theory to satisfactorily explain racial wage disparity reiterates the need to incorporate alternative theories of discrimination into mainstream economic theory.

Suggested Citation

  • Jacqueline Agesa & Darrick Hamilton, 2004. "Competition and Wage Discrimination: The Effects of Interindustry Concentration and Import Penetration," Social Science Quarterly, Southwestern Social Science Association, vol. 85(1), pages 121-135, March.
    • Handle: RePEc:bla:socsci:v:85:y:2004:i:1:p:121-135
    DOI: 10.1111/j.0038-4941.2004.08501009.x
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    References listed on IDEAS

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    1. Marianne Bertrand, 2004. "From the Invisible Handshake to the Invisible Hand? How Import Competition Changes the Employment Relationship," Journal of Labor Economics, University of Chicago Press, vol. 22(4), pages 723-766, October.
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    Cited by:

    1. Timothy M. Diette & Arthur H. Goldsmith & Darrick Hamilton & William Darity, 2018. "Race, Unemployment, and Mental Health in the USA: What Can We Infer About the Psychological Cost of the Great Recession Across Racial Groups?," Journal of Economics, Race, and Policy, Springer, vol. 1(2), pages 75-91, September.
    2. Menon, Nidhiya & Rodgers, Yana van der Meulen, 2009. "International Trade and the Gender Wage Gap: New Evidence from India's Manufacturing Sector," World Development, Elsevier, vol. 37(5), pages 965-981, May.
    3. Azim Essaji & Gregory Sweeney & Alexandros Kotsopoulos, 2010. "Equality through exposure to imports? International trade and the racial wage gap," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 13(4), pages 313-323.
    4. Jacqueline Agesa & Kristen Monaco, 2006. "The Decreasing Influence Of Domestic Market Structure On Racial Earnings Differentials: 1984 To 1996," Contemporary Economic Policy, Western Economic Association International, vol. 24(2), pages 224-236, April.
    5. Jongsung Kim & Edinaldo Tebaldi, 2011. "Does international trade impact wage discrimination?," Economics Bulletin, AccessEcon, vol. 31(3), pages 2709-2724.
    6. Christina Curley, 2018. "Sexual Orientation, Sexual History, and Inequality in the United States," Feminist Economics, Taylor & Francis Journals, vol. 24(1), pages 88-113, January.
    7. Jacqueline Agesa & Richard U. Agesa, 2012. "Imports, unionization and racial wage discrimination in the US," Applied Economics, Taylor & Francis Journals, vol. 44(3), pages 339-350, January.
    8. William Darity & Darrick Hamilton & James Stewart, 2015. "A Tour de Force in Understanding Intergroup Inequality: An Introduction to Stratification Economics," The Review of Black Political Economy, Springer;National Economic Association, vol. 42(1), pages 1-6, June.

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