On Intersectionality, Groups, Discrimination, and Labor Markets

Discrimination is tied to groupism beyond simple in-group versus out-group reactions. Most of us are members of multiple groups. Our intersectional identity shapes our interactions with others. While some group affiliations may come across as more important than others, the intersectional overlap of groups also matters a great deal. Most of the literature attributes the source of discrimination either to some form of Beckerian taste for discrimination, or else to statistical discrimination that may be tied to information asymmetries. This paper argues that these sources of discrimination tend to be intertwined, and that individual attributes and intersectionality play a role in both signaling and screening in the face of information asymmetries. Discrimination against members of minority groups thus tends to focus on their individual attributes and intersectionality beyond their larger group memberships. Employment discrimination is more likely to take the form of some extra screening of minorities than disparate hiring terms for any given occupation. The levels of signaling and screening will depend on the jobs in question as well as on the market structure of particular labor markets. This may also yield some occupational segregation in dual labor markets. Effective long-term strategies to reduce disparities must consider all of these issues and be based on a multi-pronged approach that considers how the different determinants of disparities are intertwined.