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A theoretical model of wage discrimination with inspection fines

Juan Gabriel Rodriguez (), Rafael Salas () and Juan Prieto-Rodriguez ()
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Juan Gabriel Rodriguez: Universidad Rey Juan Carlos, Madrid, Spain

Authors registered in the RePEc Author Service: Juan Gabriel Rodríguez ()

Economics Bulletin, 2008, vol. 10, issue 3, 1-9

Abstract: In neoclassical models, workers are classified a priori into discrimination groups. We develop a probabilistic model of wage discrimination in which workers need not be classified a priori. Our model is a generalization of the standard framework, whereas Becker's model is an extreme case. A second implication is that the traditional approach to measuring discrimination (the Oaxaca–Blinder approach) must be modified to take into account this probabilistic framework.

JEL-codes: J6 J7 (search for similar items in EconPapers)
Date: 2008-03-12
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