Economics at your fingertips  

Labor Market Discrimination, Pay Inequality, and Effort Variability: An Alternative to the Neoclassical Model

Morris Altman ()

Eastern Economic Journal, 1995, vol. 21, issue 2, 157-169

Abstract: In model presented in this paper, once one allows for effort variability that is positively related to labor compensation, relatively low wages that are a product of labor market discrimination can persist over time even in a world of perfect product market competition. Low wage labor is no longer cheap labor and market forces cannot eliminate pay inequality due to labor market discrimination. This stands in sharp contrast to standard economic theory which suggests that labor market discrimination cannot explain the persistence of pay differentials between identifiable groups of individuals since such pay inequality would be eliminated by competitive market forces.

Keywords: Discrimination; Inequality; Low Wage; Pay; Wage (search for similar items in EconPapers)
JEL-codes: J31 J71 J16 (search for similar items in EconPapers)
Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Eastern Economic Journal is currently edited by Cynthia A. Bansak, St. Lawrence University and Allan A. Zebedee, Clarkson University

More articles in Eastern Economic Journal from Eastern Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Victor Matheson, College of the Holy Cross ().

Page updated 2020-06-16
Handle: RePEc:eej:eeconj:v:21:y:1995:i:2:p:157-169