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Discrimination, Nepotism, and Long-Run Wage Differentials

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  • Matthew S. Goldberg

Abstract

The wage discrimination model developed by Becker has been criticized for predicting that competitive forces will lead to the disappearance of racial discrimination in the long run. We have reformulated the model in terms of nepotism toward white workers rather than discrimination against black workers. In this new framework, both nepotistic and taste-neutral firms are expected to survive the competitive struggle in the long run. Therefore, the new framework is consistent with long-run as well as short-run racial wage differentials.

Suggested Citation

  • 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.
    • Handle: RePEc:oup:qjecon:v:97:y:1982:i:2:p:307-319.
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