Theories of Discrimination and a Review of the Related Literature

Roger White

Chapter Chapter 2 in Intersectionality and Discrimination, 2023, pp 23-39 from Springer

Abstract: Abstract To provide context for our study of intersectional wage discrimination, we begin with detailed non-technical introductions to the two dominant economic theories of labor market discrimination: taste-based discrimination and statistical discrimination. We discuss the emotional motives for taste-based discrimination, including individual-level and contextual-level explanations for intergroup bias. In our discussion of statistical discrimination, we emphasize how imperfect information can lead a rational, profit-seeking employer to discriminate. Specifically, we focus on how experiences, generalizations, and stereotypes may lead to discrimination if employers find it difficult or impossible to predict the productivity of a potential hire or to measure the productivity of existing employees. Having provided a theoretical rationale for the existence of wage discrimination, we review the related economics literature. This includes a discussion of survey papers on the topic before more thoroughly commenting on the three existing economic studies of intersectional wage discrimination. We close this chapter by explicitly stating our full set of research questions.

Keywords: Imperfect information; Intergroup bias; Literature review; Statistical discrimination; Taste-based discrimination (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-26125-1_2

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DOI: 10.1007/978-3-031-26125-1_2

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