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Market Power and Employment Discrimination

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  • Walter Haessel
  • John Palmer

Abstract

A theoretical model is developed which yields the prediction that firms in more highly concentrated industries will be more likely to practice employment discrimination than other firms. The model is tested for both race and sex discrimination. The results generally confirm that firms in more highly concentrated industries discriminate more. The evidence suggests that firms which discriminate on the basis of race also do so on the basis of sex. The implications of equal-work-equal-pay legislation for employment discrimination are investigated, and we find that there may be a trade-off between employment discrimination and equalization of wages.

Suggested Citation

  • Walter Haessel & John Palmer, 1978. "Market Power and Employment Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 13(4), pages 545-560.
    • Handle: RePEc:uwp:jhriss:v:13:y:1978:i:4:p:545-560
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    Cited by:

    1. Dex S., 1992. "Costs of discriminating against migrant workers : an international review," ILO Working Papers 992869403402676, International Labour Organization.
    2. repec:ilo:ilowps:286940 is not listed on IDEAS
    3. Schwarz-Miller, Ann & Talley, Wayne K., 1997. "Motor Bus Deregulation and Racial/Gender Effects: Earnings and Employment," Transportation Research Forum Proceedings 1990s 319179, Transportation Research Forum.
    4. Fred A. Bellemore, 2001. "Racial and Ethnic Employment Discrimination," Journal of Sports Economics, , vol. 2(4), pages 356-368, November.
    5. Jacqueline Agesa, 2001. "Deregulation and the Racial Composition of Airlines," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(2), pages 223-237.
    6. Ann Schwarz-Miller & Wayne IL Talley, 2000. "Motor Bus Deregulation and the Gender Wage Gap: A Test of the Becker Hypothesis," Eastern Economic Journal, Eastern Economic Association, vol. 26(2), pages 145-156, Spring.
    7. Jacqueline Agesa, 1998. "The impact of deregulation on employment discrimination in the trucking industry," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 26(3), pages 288-303, September.
    8. Ken Cavalluzzo & Linda Cavalluzzo & John D. Wolken, 1999. "Competition, small business financing, and discrimination: evidence from a new survey," Finance and Economics Discussion Series 1999-25, Board of Governors of the Federal Reserve System (U.S.).
    9. Elmslie, Bruce & Sedo, Stanley, 1996. "Discrimination, social psychology, and hysteresis in labor markets," Journal of Economic Psychology, Elsevier, vol. 17(4), pages 465-478, August.

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