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- Title
JOB DISCRIMINATION, MARKET FORCE, AND THE INVISIBILITY HYPOTHESIS.
- Authors
Milgrom, Paul; Oster, Sharon
- Abstract
The Invisibility Hypothesis holds that the job skills of disadvantaged workers are not easily discovered by potential new employers, but that promotion enhances visibility and alleviates this problem. Then, at a competitive labor market equilibrium, firms profit by hiding talented disadvantaged workers in low-level jobs. Consequently, those workers are paid less on average and promoted less often than others with the same education and ability. As a result of the inefficient and discriminatory wage and promotion policies, disadvantaged workers experience lower returns to investments in human capital than other workers.
- Subjects
JOB skills; EMPLOYMENT discrimination; WAGES; HUMAN capital; LABOR market; MARKET equilibrium
- Publication
Quarterly Journal of Economics, 1987, Vol 102, Issue 3, p453
- ISSN
0033-5533
- Publication type
Article
- DOI
10.2307/1884213