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Insights from economic theories of discrimination: on sources, motives, consequences and policies

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  • Sukhadeo Thorat

    (Jawaharlal Nehru University)

Abstract

This paper synthesises the theories of economic discrimination as developed since they emerged first with the writing of Gary Becker in the mid-1950s and later by Arrow, George Akerlof, William Darity and others. The economic theories of discrimination by these scholars addressed some important issues related to market discrimination. The paper captures the way theories defined the concept of market, inquire into sources of economic discrimination, motives behind economic discrimination, market conditions which make it possible to discriminate, economic consequences of market discrimination on income and poverty of the discriminated groups, and policies to overcome discrimination. In the end, the paper identifies the implications of the economic theories developed in the western world with respect to race, colour and gender to the institution of caste and untouchability in India.

Suggested Citation

  • Sukhadeo Thorat, 2024. "Insights from economic theories of discrimination: on sources, motives, consequences and policies," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 26(1), pages 5-16, October.
  • Handle: RePEc:spr:jsecdv:v:26:y:2024:i:1:d:10.1007_s40847-023-00317-1
    DOI: 10.1007/s40847-023-00317-1
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    References listed on IDEAS

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    1. William Darity, 2005. "Stratification economics: The role of intergroup inequality," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 29(2), pages 144-153, June.
    2. Darity, William Jr. & Mason, Patrick L. & Stewart, James B., 2006. "The economics of identity: The origin and persistence of racial identity norms," Journal of Economic Behavior & Organization, Elsevier, vol. 60(3), pages 283-305, July.
    3. George A. Akerlof, 1980. "A Theory of Social Custom, of which Unemployment may be One Consequence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(4), pages 749-775.
    4. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    5. George Akerlof, 1976. "The Economics of Caste and of the Rat Race and Other Woeful Tales," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(4), pages 599-617.
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