Race, Competition and Differential Wages

Patrick Mason

Cambridge Journal of Economics, 1995, vol. 19, issue 4, 545-67

Abstract: This paper develops a competitive model of racial wage and employment discrimination. Discrimination is a persistent outcome of the interaction of two phenomena. The first is the adverse effect of racial conflict on the organizational strength of workers, which, in turn, affects the formation of wage differentials. This is a class struggle effect. The second is the negative correlation between the interracial employment ratio and the wage differential, within occupations and across all capitals. This is a racial exclusion effect. The interaction of the class struggle and racial exclusion effect implies persistent discrimination. (c) 1995 Academic Press, Ltd. Copyright 1995 by Oxford University Press.

Date: 1995
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