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Wage discrimination and population composition in the long run

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  • Mergoupis, Thanos
  • Nandeibam, Shasikanta

Abstract

We derive the conditions that sign the effects of changing population composition on wage levels and ratios, when labor supply and discrimination preferences vary. The overall effect depends on an aggregate market, a relative market, and a preference distribution effect.

Suggested Citation

  • Mergoupis, Thanos & Nandeibam, Shasikanta, 2014. "Wage discrimination and population composition in the long run," Economics Letters, Elsevier, vol. 122(3), pages 445-451.
    • Handle: RePEc:eee:ecolet:v:122:y:2014:i:3:p:445-451
    DOI: 10.1016/j.econlet.2013.09.028
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    References listed on IDEAS

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    1. Audra J. Bowlus & Zvi Eckstein, 2002. "Discrimination and Skill Differences in an Equilibrium Search Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(4), pages 1309-1345, November.
    2. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162, May.
    3. Neal, Derek A & Johnson, William R, 1996. "The Role of Premarket Factors in Black-White Wage Differences," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 869-895, October.
    4. Heckman, James J, 1993. "What Has Been Learned about Labor Supply in the Past Twenty Years?," American Economic Review, American Economic Association, vol. 83(2), pages 116-121, May.
    5. Matthew S. Goldberg, 1982. "Discrimination, Nepotism, and Long-Run Wage Differentials," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 97(2), pages 307-319.
    6. Kerwin Kofi Charles & Jonathan Guryan, 2008. "Prejudice and Wages: An Empirical Assessment of Becker's The Economics of Discrimination," Journal of Political Economy, University of Chicago Press, vol. 116(5), pages 773-809, October.
    7. Kerwin Kofi Charles & Jonathan Guryan, 2007. "Prejudice and The Economics of Discrimination," NBER Working Papers 13661, National Bureau of Economic Research, Inc.
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    Keywords

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    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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