IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-05j70001.html
   My bibliography  Save this article

Wage discrimination as an illegal behavior

Author

Listed:
  • Yossi Tobol

    () (Department of Economics, Bar-Ilan University, Israel)

Abstract

Paying different wages to workers of equal productivity because of demographic groups to which they belong is illegal in the US and other Western countries. Yet, the vast economic literature on wage discrimination has entirely overlooked this fact when modeling the employer's discriminatory behavior. Consequently, the desirability of practicing wage discrimination, whether arising from differences in labor supply elasticities or from an inherent taste for discrimination, has never been confronted with the risk of getting caught and punished due to violating the equal pay law. Incorporating this risk into Joan Robinson''s (1969) discriminatory monopsony model and Gary Becker''s (1971) taste-for-discrimination model, this paper examines the effects that illegalizing wage discrimination may have on the wage differential under discriminatory monopsonistic and competitive conditions. The analysis unveils a sharp contrast in the effect of illegalization in the alternative settings.

Suggested Citation

  • Yossi Tobol, 2005. "Wage discrimination as an illegal behavior," Economics Bulletin, AccessEcon, vol. 10(4), pages 1-10.
  • Handle: RePEc:ebl:ecbull:eb-05j70001
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/pubs/EB/2005/Volume10/EB-05J70001A.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Asongu Simplice & Jellal Mohamed, 2014. "A Theory of Compliance with Minimum Wage Law," Working Papers 14/008, African Governance and Development Institute..
    2. Yang-Ming Chang & Bhavneet Walia, 2007. "Wage discrimination and partial compliance with the minimum wage law," Economics Bulletin, AccessEcon, vol. 10(4), pages 1-7.

    More about this item

    Keywords

    Illegal Behavior;

    JEL classification:

    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-05j70001. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.