Managerial Monitoring and Discrimination with Intertemporal Optimization

Loureiro, Paulo R. A.

doi:10.2139/ssrn.274321

Abstract

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Managerial Monitoring and Discrimination with Intertemporal Optimization

Paulo R. A. Loureiro

University of Brasília- UnB

May 2001

Catholic University of Brasilia Working Paper

Abstract:
In this paper we develop a model that incorporates the managers' ability and the observed productivity of a worker in a firm's profit function. In that way, the loss of efficiency yielded by the presence of discrimination is compensated for. The model demonstrates that a number of workers with different productivities earns the same wages, which also indicates a form of discrimination.

Number of Pages in PDF File: 11

Keywords: Discrimination, managers, monitoring, productivity and wages

JEL Classification: J71, D82

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Date posted: July 3, 2001

Suggested Citation

Loureiro, Paulo R. A., Managerial Monitoring and Discrimination with Intertemporal Optimization (May 2001). Catholic University of Brasilia Working Paper. Available at SSRN: http://ssrn.com/abstract=274321 or http://dx.doi.org/10.2139/ssrn.274321

Contact Information

Paulo R. A. Loureiro (Contact Author)

University of Brasília- UnB ( email )

Campus Darcy Ribeiro-Asa Norte 70362-010 - Brasil
Brasilia, DF 70362-010
Brazil

HOME PAGE: http://www.pauloloureiro.unb.br/