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- Title
DISCRIMINATION, NEPOTISM, AND LONG-RUN WAGE DIFFERENTIALS.
- Authors
Goldberg, Matthew S.
- Abstract
The wage discrimination model developed by Becker has been criticized for predicting that competitive forces will lead to the disappearance of racial discrimination in the long run. We have reformulated the model in terms of nepotism toward white workers rather than discrimination against black workers. In this new framework, both nepotistic and taste-neutral firms are expected to survive the competitive struggle in the long run. Therefore, the new framework is consistent with long-run as well as short-run racial wage differentials.
- Subjects
EMPLOYMENT discrimination; WAGES; RACE discrimination; NEPOTISM; COMPETITION; WAGE differentials
- Publication
Quarterly Journal of Economics, 1982, Vol 97, Issue 2, p307
- ISSN
0033-5533
- Publication type
Article
- DOI
10.2307/1880760