Bonuses, Quotas, and the Employment of Black Workers

Duran Bell

Journal of Human Resources, 1971, vol. 6, issue 3, 309-320

Abstract: The purpose of this study is to compare the consequences for employers and black workers of racial quotes, as opposed to bonus (training grant) systems. The author found the quota system preferable to the simple bonus system on the grounds that the bonus tended to reward firms for having poor pre-bonus ethnic ratios and provided the opportunity for profiteering on the part of racist employers; whereas the quota system benefited black workers without paying tribute to racism. A "modified" bonus system was devised which incorporated the advantages of both quota and bonus with few of the disadvantages of either. An examination of the "modified" bonus system with respect to (a) its effect upon black wage rates and (b) the consequences of the "raiding" of blacks from one firm by another gave rise to a final minor modification in the recommended bonus system.

Date: 1971
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.jstor.org/stable/pdfplus/144953
A subscription is required to access pdf files. Pay per article is available.

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: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:6:y:1971:i:3:p:309-320

Access Statistics for this article

More articles in Journal of Human Resources from University of Wisconsin Press
Bibliographic data for series maintained by ().