Selection Wages and Discrimination
AbstractApplicants for any given job are more or less suited to fill it, and the firm will select the best among them. Increasing the wage offer attracts more applicants and makes it possible to raise the hiring standard and improve the productivity of the staff. Wages that optimize on the trade-off between the wage level and the productivity of the workforce are known as selection wages. As men react more strongly to wage differentials than females, the trade-off is more pronounced for men and a profit-maximizing firm will offer a higher wage for men than for women in equilibrium.
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Bibliographic InfoPaper provided by University of Munich, Department of Economics in its series Discussion Papers in Economics with number 10990.
Date of creation: Sep 2009
Date of revision:
Discrimination; selection wages; efficiency wages; hiring standards; monopsony; employment criteria; wage posting; Reder competition; social roles; social stereotypes; social multiplier; statistical discrimination; taste discrimination;
Other versions of this item:
- Schlicht, Ekkehart, 2010. "Selection wages and discrimination," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 4(6), pages 1-30.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J7 - Labor and Demographic Economics - - Labor Discrimination
- B54 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Feminist Economics
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
- D42 - Microeconomics - - Market Structure and Pricing - - - Monopoly
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-09-11 (All new papers)
- NEP-BEC-2009-09-11 (Business Economics)
- NEP-LAB-2009-09-11 (Labour Economics)
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