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Discrimination and Profit

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Author Info

  • Dragos BIGU

    ()
    (Spiru Haret University, Bucharest, Romania)

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    Abstract

    In this paper I analyze the relation between anti-discrimination policies applied by a company and its profit. Some authors argue that the problem of discrimination should not be approached at the company level, because this will negatively affect its profit, but at the public policy level. I try to show that a company can apply anti-discrimination policies with a positive impact on profit. Policies of the first type have as their aim to ensure fairness in the selection process. Other policies give privilege to the members of discriminated groups in the selection process. At last, companies can implement a minimum quota system for members of a discriminated group. I prove that these three types of policies can positively affect the company’s profit.

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    File URL: http://www.rmci.ase.ro/no10vol5/Vol10_No5_Article17.pdf
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    Bibliographic Info

    Article provided by Faculty of Management, Academy of Economic Studies, Bucharest, Romania in its journal REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT.

    Volume (Year): 10 (2009)
    Issue (Month): 5 (December)
    Pages: 1021-1027

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    Handle: RePEc:rom:rmcimn:v:10:y:2009:i:5:p:1021-1027

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    Related research

    Keywords: discrimination; hiring policies; profit maximization; affirmative action; quota system.;

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    References

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    1. Manuela TOMEI, 2003. "Discrimination and equality at work: A review of the concepts," International Labour Review, International Labour Organization, vol. 142(4), pages 401-418, December.
    2. Peter Norman, 2003. "Statistical Discrimination and Efficiency," Review of Economic Studies, Wiley Blackwell, vol. 70(3), pages 615-627, 07.
    3. Greg Leblanc, 1995. "Discrimination in the Labour Market," Canadian Journal of Economics, Canadian Economics Association, vol. 28(3), pages 702-17, August.
    4. Peter Norman, 2003. "Statistical Discrimination and Efficiency," Review of Economic Studies, Oxford University Press, vol. 70(3), pages 615-627.
    5. Harry J. Holzer & David Neumark, 1998. "What Does Affirmative Action Do?," NBER Working Papers 6605, National Bureau of Economic Research, Inc.
    6. Harry J. Holzer, 1998. "Employer skill demands and labor market outcomes of blacks and women," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 52(1), pages 82-98, October.
    7. Michael Sattinger, 1993. "Statistical Discrimination with Employment Criteria," Discussion Papers 93-01, University at Albany, SUNY, Department of Economics.
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