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The divide-and-conquer and employer/employee models of discrimination: neoclassical competition as a familial defect

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  • Mason, Patrick L.

Abstract

This article is an examination of the similarities between Michael Reich’s divide-and-conquer model of discrimination and the Becker-Arrow taste model of discrimination. It shows that Reich’s model of discrimination is analytically identical to Arrow’s employer discrimination model when employer utility is a function of total profits and the racial employment ratio. It also shows that the Becker-Arrow distinction between employer and employee discrimination is invalid. Finally, the author argues that neoclassical competition is the major defect of both models. After discussing the implications of these results the article points to new directions in the literature on the economics of discrimination.

Suggested Citation

  • Mason, Patrick L., 1992. "The divide-and-conquer and employer/employee models of discrimination: neoclassical competition as a familial defect," MPRA Paper 11333, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:11333
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    References listed on IDEAS

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    1. John Roemer, 1981. "Reply to England and Greene," Review of Radical Political Economics, Union for Radical Political Economics, vol. 12(4), pages 75-75, January.
    2. Steven Shulman, 1987. "Discrimination, Human Capital, and Black-White Unemployment: Evidence from Cities," Journal of Human Resources, University of Wisconsin Press, vol. 22(3), pages 361-376.
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    5. John E. Roemer, 1979. "Divide and Conquer: Microfoundations of a Marxian Theory of Wage Discrimination," Bell Journal of Economics, The RAND Corporation, vol. 10(2), pages 695-705, Autumn.
    6. Samuel Bowles & Glenn C. Loury & Rajiv Sethi, 2014. "Group Inequality," Journal of the European Economic Association, European Economic Association, vol. 12(1), pages 129-152, February.
    7. Steven Shulman, 1990. "Racial inequality and white employment: An interpretation and test of the bargaining power hypothesis," The Review of Black Political Economy, Springer;National Economic Association, vol. 18(3), pages 5-20, December.
    8. Darity, William A, Jr & Williams, Rhonda M, 1985. "Peddlers Forever? Culture, Competition, and Discrimination," American Economic Review, American Economic Association, vol. 75(2), pages 256-261, May.
    9. Rhonda M. Williams, 1987. "Capital, Competition, and Discrimination: A Reconsideration of Racial Earnings Inequality," Review of Radical Political Economics, Union for Radical Political Economics, vol. 19(2), pages 1-15, June.
    10. Marcus Alexis & Marshall Medoff, 1984. "Becker’s utility approach to discrimination: A review of the issues," The Review of Black Political Economy, Springer;National Economic Association, vol. 12(4), pages 41-58, March.
    11. J.E. Roemer & John Roemer, 1978. "Differentially Exploited Labor: A Marxian Theory of Discrimination," Review of Radical Political Economics, Union for Radical Political Economics, vol. 10(2), pages 43-53, July.
    12. David Swinton, 1978. "A labor force competition model of racial discrimination in the labor market," The Review of Black Political Economy, Springer;National Economic Association, vol. 9(1), pages 5-42, September.
    13. Joan Robinson, 1969. "The Economics of Imperfect Competition," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-1-349-15320-6, October.
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    Cited by:

    1. William M. Rodgers III, 1997. "Male Sub-metropolitan Black-White Wage Gaps: New Evidence for the 1980s," Urban Studies, Urban Studies Journal Limited, vol. 34(8), pages 1201-1213, July.
    2. Patrck L. Mason, 1993. "Accumulation, Segmentation and the Discriminatory Process in the Market for Labor Power," Review of Radical Political Economics, Union for Radical Political Economics, vol. 25(2), pages 1-25, June.
    3. Mason, Patrick L., 1993. "Variable labor effort, involuntary unemployment, and effective demand," MPRA Paper 11331, University Library of Munich, Germany.

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    More about this item

    Keywords

    dsicrimination; labor market competition; divide-and-conquer;
    All these keywords.

    JEL classification:

    • J7 - Labor and Demographic Economics - - Labor Discrimination

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