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Economic theories of discrimination

In: Explaining the Gender Wage Gap

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Abstract

Chapter 1 explains the gender wage gap based on neoclassical and feminist theories. In neoclassical theory, different earnings of women and men derive from the different endowments of the two genders. They may also result from the preferences of prejudiced employers. However, in the long run, such employers will be pushed out of the market in favour of those without prejudice. As a result, wage differentials are a consequence of different levels of employee productivity. The feminist school, in contrast, sees the wage gap as a result of the interaction of economic, social, political, and cultural forces both in the labour market and in the family. The two schools of thought agree, though, that the gender wage gap is partly caused by the different characteristics of the two genders.

Suggested Citation

  • ., 2023. "Economic theories of discrimination," Chapters, in: Explaining the Gender Wage Gap, chapter 1, pages 4-29, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:22349_1
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    File URL: https://www.elgaronline.com/doi/10.4337/9781035312597.00006
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