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Market Power and Employment Discrimination

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  • Walter Haessel
  • John Palmer
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    Abstract

    A theoretical model is developed which yields the prediction that firms in more highly concentrated industries will be more likely to practice employment discrimination than other firms. The model is tested for both race and sex discrimination. The results generally confirm that firms in more highly concentrated industries discriminate more. The evidence suggests that firms which discriminate on the basis of race also do so on the basis of sex. The implications of equal-work-equal-pay legislation for employment discrimination are investigated, and we find that there may be a trade-off between employment discrimination and equalization of wages.

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    Bibliographic Info

    Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

    Volume (Year): 13 (1978)
    Issue (Month): 4 ()
    Pages: 545-560

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    Handle: RePEc:uwp:jhriss:v:13:y:1978:i:4:p:545-560

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    Web page: http://jhr.uwpress.org/

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    Cited by:
    1. Ann Schwarz-Miller & Wayne IL Talley, 2000. "Motor Bus Deregulation and the Gender Wage Gap: A Test of the Becker Hypothesis," Eastern Economic Journal, Eastern Economic Association, vol. 26(2), pages 145-156, Spring.
    2. Jacqueline Agesa, 2001. "Deregulation and the Racial Composition of Airlines," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(2), pages 223-237.
    3. Dex S, 1992. "Costs of discriminating against migrant workers : an international review," ILO Working Papers 286940, International Labour Organization.
    4. Ken Cavalluzzo & Linda Cavalluzzo & John Wolken, 1999. "Competition, small business financing, and discrimination: evidence from a new survey," Finance and Economics Discussion Series 1999-25, Board of Governors of the Federal Reserve System (U.S.).
    5. Elmslie, Bruce & Sedo, Stanley, 1996. "Discrimination, social psychology, and hysteresis in labor markets," Journal of Economic Psychology, Elsevier, vol. 17(4), pages 465-478, August.
    6. Jacqueline Agesa, 1998. "The impact of deregulation on employment discrimination in the trucking industry," Atlantic Economic Journal, International Atlantic Economic Society, vol. 26(3), pages 288-303, September.

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