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Selection Wages and Discrimination

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Author Info
Schlicht, Ekkehart

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Abstract

Applicants 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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File URL: http://epub.ub.uni-muenchen.de/10990/1/schlicht_discrimination11-DP.pdf
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Publisher Info
Paper provided by University of Munich, Department of Economics in its series Discussion Papers in Economics with number 10990.

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Date of creation: Sep 2009
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Handle: RePEc:lmu:muenec:10990

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Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: http://www.vwl.uni-muenchen.de
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Related research
Keywords: 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:

Find related papers by JEL classification:
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

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This page was last updated on 2009-11-26.

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