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Discrimination and Profit

Author

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  • Dragos BIGU

    (Spiru Haret University, Bucharest, Romania)

Abstract

In this paper I analyze the relation between anti-discrimination policies applied by a company and its profit. Some authors argue that the problem of discrimination should not be approached at the company level, because this will negatively affect its profit, but at the public policy level. I try to show that a company can apply anti-discrimination policies with a positive impact on profit. Policies of the first type have as their aim to ensure fairness in the selection process. Other policies give privilege to the members of discriminated groups in the selection process. At last, companies can implement a minimum quota system for members of a discriminated group. I prove that these three types of policies can positively affect the company’s profit.

Suggested Citation

  • Dragos BIGU, 2009. "Discrimination and Profit," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 10(5), pages 1021-1027, December.
    • Handle: RePEc:rom:rmcimn:v:10:y:2009:i:5:p:1021-1027
    as

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    File URL: https://www.rmci.ase.ro/no10vol5/Vol10_No5_Article17.pdf
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    References listed on IDEAS

    as
    1. Sattinger, Michael, 1998. "Statistical Discrimination with Employment Criteria," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(1), pages 205-237, February.
    2. Harry J. Holzer & David Neumark, 2000. "What Does Affirmative Action Do?," ILR Review, Cornell University, ILR School, vol. 53(2), pages 240-271, January.
    3. Peter Norman, 2003. "Statistical Discrimination and Efficiency," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(3), pages 615-627.
    4. Manuela TOMEI, 2003. "Discrimination and equality at work: A review of the concepts," International Labour Review, International Labour Organization, vol. 142(4), pages 401-418, December.
    5. Greg Leblanc, 1995. "Discrimination in the Labour Market," Canadian Journal of Economics, Canadian Economics Association, vol. 28(3), pages 702-717, August.
    6. Harry J. Holzer, 1998. "Employer Skill Demands and Labor Market Outcomes of Blacks and Women," ILR Review, Cornell University, ILR School, vol. 52(1), pages 82-98, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    discrimination; hiring policies; profit maximization; affirmative action; quota system.;
    All these keywords.

    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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