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Race, Competition and Differential Wages

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  • Mason, Patrick L

Abstract

This paper develops a competitive model of racial wage and employment discrimination. Discrimination is a persistent outcome of the interaction of two phenomena. The first is the adverse effect of racial conflict on the organizational strength of workers, which, in turn, affects the formation of wage differentials. This is a class struggle effect. The second is the negative correlation between the interracial employment ratio and the wage differential, within occupations and across all capitals. This is a racial exclusion effect. The interaction of the class struggle and racial exclusion effect implies persistent discrimination. (c) 1995 Academic Press, Ltd. Copyright 1995 by Oxford University Press.

Suggested Citation

  • Mason, Patrick L, 1995. "Race, Competition and Differential Wages," Cambridge Journal of Economics, Oxford University Press, vol. 19(4), pages 545-567, August.
  • Handle: RePEc:oup:cambje:v:19:y:1995:i:4:p:545-67
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    References listed on IDEAS

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    Cited by:

    1. Antecol, Heather & Cobb-Clark, Deborah A., 2008. "Racial and ethnic discrimination in local consumer markets: Exploiting the army's procedures for matching personnel to duty locations," Journal of Urban Economics, Elsevier, vol. 64(2), pages 496-509, September.
    2. Cooper, Peter, 2006. "Competition, Learning and Persistence in the Effects of Unmeritocratic Hiring Decisions," Working Papers 06-02.2, University of Sydney, School of Economics.
    3. Antecol, Heather & Cobb-Clark, Deborah A., 2008. "Identity and racial harassment," Journal of Economic Behavior & Organization, Elsevier, vol. 66(3-4), pages 529-557, June.
    4. Manuel Carvajal, 2006. "Economic grounds for affirmative action: The evidence on architects and engineers in South Florida," Review of Social Economy, Taylor & Francis Journals, vol. 64(4), pages 515-538.
    5. Mason, Patrick L., 1994. "An empirical derivation of the industry wage equation," MPRA Paper 11325, University Library of Munich, Germany.
    6. O'Brien, Kevin M., 2003. "The determinants of minority employment in police and fire departments," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(2), pages 183-195, May.
    7. Patrick L. Mason, 2000. "Persistent Discrimination: Racial Disparity in the United States, 1967-1988," American Economic Review, American Economic Association, vol. 90(2), pages 312-316, May.

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