Discrimination and Population Composition in the Long Run

38 Pages Posted: 19 Oct 2011 Last revised: 24 Mar 2015

Thanos Mergoupis

University of Bath - Department of Economics

Shasikanta Nandeibam

University of Bath - Department of Economics

Date Written: June 20, 2013

Abstract

The effects of a changing population composition on wages in the context of wage discrimination have been analyzed when labor supplies and discrimination preferences are fixed. This paper introduces variable supplies, with labor supply varying at the extensive margin and discriminatory preferences varying with population composition. We find that wages of the discriminated and the non-discriminated group can change in the same direction, depending on the aggregate market, relative market, and distributional effects. Variable preferences may also change the direction of the effect on the wage ratio.

Keywords: population composition, employer discrimination, equilibrium wages

JEL Classification: J21, J71

Suggested Citation

Mergoupis, Thanos and Nandeibam, Shasikanta, Discrimination and Population Composition in the Long Run (June 20, 2013). Available at SSRN: https://ssrn.com/abstract=1946227 or http://dx.doi.org/10.2139/ssrn.1946227

Thanos Mergoupis (Contact Author)

University of Bath - Department of Economics ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom

Shasikanta Nandeibam

University of Bath - Department of Economics ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom

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