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A Model and Some Evidence Concerning the Influence of Discrimination on Wages

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  • Lindsay, Cotton M
  • Maloney, Michael T

Abstract

The observed wage gap between men and women is widely attributed to discrimination in the workplace. Yet, in the standard neoclassical framework, discrimination is neither a necessary nor sufficient condition. This paper presents a modified neoclassical model that supports equilibrium wage differentials and that has testable implications. The paper also surmounts a difficulty that has plagued many earlier assessments--separating prejudice from other explanations of the wage gap. By directing attention away from wages to other implied effects of discrimination, the model offers cleaner tests of the impact of prejudice in labor markets. Results of such tests are reported. Copyright 1988 by Oxford University Press.

Suggested Citation

  • Lindsay, Cotton M & Maloney, Michael T, 1988. "A Model and Some Evidence Concerning the Influence of Discrimination on Wages," Economic Inquiry, Western Economic Association International, vol. 26(4), pages 645-660, October.
    • Handle: RePEc:oup:ecinqu:v:26:y:1988:i:4:p:645-60
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    Cited by:

    1. Kathy A. Paulson Gjerde, 2002. "The existence of gender-specific promotion standards in the U.S," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 23(8), pages 447-459.
    2. McCormick, Robert E. & Tollison, Robert D., 2001. "Why do black basketball players work more for less money?," Journal of Economic Behavior & Organization, Elsevier, vol. 44(2), pages 201-219, February.

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