This article is an examination of the similarities between Michael Reich’s divide-and-conquer model of discrimination and the Becker-Arrow taste model of discrimination. It shows that Reich’s model of discrimination is analytically identical to Arrow’s employer discrimination model when employer utility is a function of total profits and the racial employment ratio. It also shows that the Becker-Arrow distinction between employer and employee discrimination is invalid. Finally, the author argues that neoclassical competition is the major defect of both models. After discussing the implications of these results the article points to new directions in the literature on the economics of discrimination.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
11333.
Length: Date of creation: 1992 Date of revision: Publication status: Published in The divide-and-conquer and employer/employee models of discrimination: neoclassical competition as a familial defect 4.20(1992): pp. 73-89 Handle: RePEc:pra:mprapa:11333
Find related papers by JEL classification: J7 - Labor and Demographic Economics - - Labor Discrimination
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Samuel Bowles & Glenn C. Loury & Rajiv Sethi, 2009.
"Group Inequality,"
Economics Working Papers
0088, Institute for Advanced Study, School of Social Science.
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