IDEAS home Printed from https://ideas.repec.org/a/gam/jmathe/v9y2021i19p2419-d645726.html
   My bibliography  Save this article

The Cost of Work Discrimination: A Market Capture Differential Game Model

Author

Listed:
  • Mario Alberto García-Meza

    (Faculty of Economics, Accounting and Management (FECA), Universidad Juárez del Estado de Durango, Durango 34000, Mexico)

Abstract

Discrimination in the workplace can be a source of opportunity costs for firms that desire to enter a new market. In this article, we model how an exogenous technological change introduces both new potential workers in the labor market and, as the economy grows, a new set of consumers for firms to conquer. We then use a differential model to show how the payoff of a firm that discriminates in the labor market loses potential market from this same demographic. Our results imply that anti-discriminatory policies within the firm constitute an important element for the solution of this problem, and that there might be incentives for the firms to apply such policies.

Suggested Citation

  • Mario Alberto García-Meza, 2021. "The Cost of Work Discrimination: A Market Capture Differential Game Model," Mathematics, MDPI, vol. 9(19), pages 1-10, September.
    • Handle: RePEc:gam:jmathe:v:9:y:2021:i:19:p:2419-:d:645726
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7390/9/19/2419/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7390/9/19/2419/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Laura Giuliano & David I. Levine & Jonathan Leonard, 2009. "Manager Race and the Race of New Hires," Journal of Labor Economics, University of Chicago Press, vol. 27(4), pages 589-631, October.
    2. Stephens-Davidowitz, Seth, 2014. "The cost of racial animus on a black candidate: Evidence using Google search data," Journal of Public Economics, Elsevier, vol. 118(C), pages 26-40.
    3. Claudia Goldin & Lawrence F. Katz, 2002. "The Power of the Pill: Oral Contraceptives and Women's Career and Marriage Decisions," Journal of Political Economy, University of Chicago Press, vol. 110(4), pages 730-770, August.
    4. Marianne Bertrand & Dolly Chugh & Sendhil Mullainathan, 2005. "Implicit Discrimination," American Economic Review, American Economic Association, vol. 95(2), pages 94-98, May.
    5. Kenneth Arrow, 1971. "The Theory of Discrimination," Working Papers 403, Princeton University, Department of Economics, Industrial Relations Section..
    6. repec:pri:indrel:dsp014t64gn18f is not listed on IDEAS
    7. Kevin Lang & Ariella Kahn-Lang Spitzer, 2020. "Race Discrimination: An Economic Perspective," Journal of Economic Perspectives, American Economic Association, vol. 34(2), pages 68-89, Spring.
    8. Marianne Bertrand & Claudia Goldin & Lawrence F. Katz, 2010. "Dynamics of the Gender Gap for Young Professionals in the Financial and Corporate Sectors," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 228-255, July.
    9. Cecilia Rouse & Claudia Goldin, 2000. "Orchestrating Impartiality: The Impact of "Blind" Auditions on Female Musicians," American Economic Review, American Economic Association, vol. 90(4), pages 715-741, September.
    10. Marianne Bertrand & Sendhil Mullainathan, 2004. "Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination," American Economic Review, American Economic Association, vol. 94(4), pages 991-1013, September.
    11. Stigler, George J & Becker, Gary S, 1977. "De Gustibus Non Est Disputandum," American Economic Review, American Economic Association, vol. 67(2), pages 76-90, March.
    12. Mario A. García-Meza & Ekaterina Viktorovna Gromova & José Daniel López-Barrientos, 2018. "Stable Marketing Cooperation in a Differential Game for an Oligopoly," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-18, September.
    13. Luigi Bonaventura & Alessio Emanuele Biondo, 2016. "Disclosure of sexual orientation in the USA and its consequences in the workplace," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 43(11), pages 1115-1123, November.
    14. Goldin, Claudia D. & Rouse, Cecilia, 2000. "Orchestrating Impartiality: The Impact of “Blind†Auditions on Female Musicians," Scholarly Articles 30703974, Harvard University Department of Economics.
    15. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    16. Mohammed Hossain & Muhammad Atif & Ammad Ahmed & Lokman Mia, 2020. "Do LGBT Workplace Diversity Policies Create Value for Firms?," Journal of Business Ethics, Springer, vol. 167(4), pages 775-791, December.
    17. Dan Horsky & Leonard S. Simon, 1983. "Advertising and the Diffusion of New Products," Marketing Science, INFORMS, vol. 2(1), pages 1-17.
    18. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    19. Danielle Li & Lindsey R. Raymond & Peter Bergman, 2020. "Hiring as Exploration," NBER Working Papers 27736, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jacquemet, Nicolas & Yannelis, Constantine, 2012. "Indiscriminate discrimination: A correspondence test for ethnic homophily in the Chicago labor market," Labour Economics, Elsevier, vol. 19(6), pages 824-832.
    2. J. Aislinn Bohren & Alex Imas & Michael Rosenberg, 2019. "The Dynamics of Discrimination: Theory and Evidence," American Economic Review, American Economic Association, vol. 109(10), pages 3395-3436, October.
    3. Barron, Kai & Ditlmann, Ruth & Gehrig, Stefan & Schweighofer-Kodritsch, Sebastian, 2020. "Explicit and implicit belief-based gender discrimination: A hiring experiment," Discussion Papers, Research Unit: Economics of Change SP II 2020-306, WZB Berlin Social Science Center.
    4. Nickolas Gagnon & Kristof Bosmans & Arno Riedl, 2020. "The Effect of Unfair Chances and Gender Discrimination on Labor Supply," CESifo Working Paper Series 8058, CESifo.
    5. Committee, Nobel Prize, 2023. "Scientific Background to the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2023," Nobel Prize in Economics documents 2023-2, Nobel Prize Committee.
    6. Andreas Leibbrandt & John A. List, 2018. "Do Equal Employment Opportunity Statements Backfire? Evidence From A Natural Field Experiment On Job-Entry Decisions," NBER Working Papers 25035, National Bureau of Economic Research, Inc.
    7. Marianne Bertrand & Esther Duflo, 2016. "Field Experiments on Discrimination," NBER Working Papers 22014, National Bureau of Economic Research, Inc.
    8. Carlsson, Magnus & Fumarco, Luca & Rooth, Dan-Olof, 2013. "Artifactual Evidence of Discrimination in Correspondence Studies? A Replication of the Neumark Method," IZA Discussion Papers 7619, Institute of Labor Economics (IZA).
    9. Kevin Lang & Jee-Yeon K. Lehmann, 2012. "Racial Discrimination in the Labor Market: Theory and Empirics," Journal of Economic Literature, American Economic Association, vol. 50(4), pages 959-1006, December.
    10. Jean-Benoît Eymeoud & Paul Vertier, 2018. "Gender Biases: Evidence from a Natural Experiment in French Local Elections," Post-Print hal-03393139, HAL.
    11. Jean-Benoît Eyméoud & Paul Vertier, 2023. "Gender biases: evidence from a natural experiment in French local elections," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 38(113), pages 3-56.
    12. Conde-Ruiz, J. Ignacio & Ganuza, Juan José & Profeta, Paola, 2022. "Statistical discrimination and committees," European Economic Review, Elsevier, vol. 141(C).
    13. Ayaita, Adam, 2021. "Labor Market Discrimination and Statistical Differences in Unobserved Characteristics of Applicants," EconStor Preprints 236615, ZBW - Leibniz Information Centre for Economics.
    14. Marianne Bertrand & Esther Duflo, 2016. "Field Experiments on Discrimination," NBER Working Papers 22014, National Bureau of Economic Research, Inc.
    15. Stijn Baert, 2014. "Career lesbians. Getting hired for not having kids?," Industrial Relations Journal, Wiley Blackwell, vol. 45(6), pages 543-561, November.
    16. Ballance, Joshua & Clifford, Robert & Shoag, Daniel, 2020. "“No more credit score”: Employer credit check bans and signal substitution," Labour Economics, Elsevier, vol. 63(C).
    17. Filip Matejka, 2013. "Attention Discrimination: Theory and Field Experiments," 2013 Meeting Papers 798, Society for Economic Dynamics.
    18. Lepage, Louis Pierre, 2021. "Endogenous learning, persistent employer biases, and discrimination," CLEF Working Paper Series 34, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    19. David Bjerk, 2008. "Glass Ceilings or Sticky Floors? Statistical Discrimination in a Dynamic Model of Hiring and Promotion," Economic Journal, Royal Economic Society, vol. 118(530), pages 961-982, July.
    20. Xiao Lin & Mark J. Browne & Annette Hofmann, 2022. "Race discrimination in the adjudication of claims: Evidence from earthquake insurance," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 89(3), pages 553-580, September.

    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:gam:jmathe:v:9:y:2021:i:19:p:2419-:d:645726. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.