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Journal ArticleDOI

Wage discrimination and antidiscrimination policy in unionized industries

Minas Vlassis, +1 more
- 01 Jan 2012 - 
- Vol. 105, Iss: 1, pp 45-62
TLDR
In this article, the authors consider industries where the equally skilled workers/members of firm-specific monopoly unions can be grouped according to different reservation wages, and they show that, in absence of active antidiscrimination policy, discriminatory wage contracts across groups of employees may emerge, in equilibrium, under either oligopoly or a perfectly competitive product market.
Abstract
We consider industries where the equally skilled workers/members of firm-specific monopoly unions can be grouped according to different reservation wages. We show that, in absence of active antidiscrimination policy, discriminatory wage contracts across groups of employees may emerge, in equilibrium, under either oligopoly or a perfectly competitive product market. We subsequently propose that to combat wage discrimination a benevolent policy maker should under either market structure subsidize the employment of the low reservation wage group. The reason is that taxing wage discrimination, as an alternative antidiscrimination policy, always entails a welfare loss relative to the no policy/wage discrimination status quo.

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Citations
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Journal ArticleDOI

Local institutions, union wage effects and native–foreign wage gaps

TL;DR: In this paper, the authors consider local rent-sharing in Danish firms and show that it is important for wage differences among labour of various origins among workers of different origins in Denmark.
Journal ArticleDOI

Gender Discrimination, Education and Economic Growth in a Generalized Uzawa-Lucas Two-Sector Model

TL;DR: In this article, the authors studied the relationship between economic growth and gender discrimination in labor markets and education and proposed a growth model with endogenous wealth and human capital accumulation, gender time distribution between work, leisure and education under gender discrimination.

Identification, screening and steroetyping in labor market discrimination

TL;DR: In this article, a microeconomic model of hiring and pay decisions by an employer is presented, where the authors integrate both responses in a model of uncertainty in decision-making, leading to less stereotyping of people and hence less discrimination, and social identification with an ingroup, inducing more reliance on stereotypic perceptions and prejudices, and hence more discrimination against an outgroup.
References
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Book

The Economics of Discrimination

TL;DR: The second edition of "The Economics of Discrimination" has been expanded to include three further discussions of the problem and an entirely new introduction which considers contributions made by others in recent years and some of the more important problems remaining as discussed by the authors.
Journal ArticleDOI

Two-Person Cooperative Games

TL;DR: In this paper, a new approach involving the elaboration of the threat concept is introduced involving a wider class of situations in which threats can play a role, and the autor extends his previous treatment of "The Bargaining Problem" to a wider set of situations where threats can be played a role.
Journal ArticleDOI

A model of duopoly suggesting a theory of entry barriers

TL;DR: The authors analyzes a model of duopoly with fixed costs and finds that two aspects of product differentiation have distinct effects: an absolute advantage in demand for the established firm makes entry harder, but a lower cross-price effect facilitates it.
Book

Axiomatic models of bargaining

Alvin E. Roth
TL;DR: In this paper, Nash's model of Bargaining is extended to other models of bargaining, such as individual rationality, symmetry and asymmetry, and the utility of bargaining as a non-cooperative game.
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