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A theoretical model of wage discrimination with inspection fines

Author

Listed:
  • Juan Gabriel Rodriguez

    (Universidad Rey Juan Carlos, Madrid, Spain)

  • Rafael Salas

    (Universidad Complutense de Madrid, Spain)

  • Juan Prieto-Rodriguez

    (Universidad de Oviedo, Spain)

Abstract

In neoclassical models, workers are classified a priori into discrimination groups. We develop a probabilistic model of wage discrimination in which workers need not be classified a priori. Our model is a generalization of the standard framework, whereas Becker's model is an extreme case. A second implication is that the traditional approach to measuring discrimination (the Oaxaca–Blinder approach) must be modified to take into account this probabilistic framework.

Suggested Citation

  • Juan Gabriel Rodriguez & Rafael Salas & Juan Prieto-Rodriguez, 2008. "A theoretical model of wage discrimination with inspection fines," Economics Bulletin, AccessEcon, vol. 10(3), pages 1-9.
    • Handle: RePEc:ebl:ecbull:eb-07j70003
    as

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    References listed on IDEAS

    as
    1. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    2. Juan Prieto Rodríguez & Juan Gabriel Rodríguez & Rafael Salas, 2006. "On The Measurement Of Illegal Wage Discrimination: The Michael Jordan Paradox," Working Papers 38, ECINEQ, Society for the Study of Economic Inequality.
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    More about this item

    JEL classification:

    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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