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| Author: | Kaas, L. |
| Title: | Does equal pay legislation reduce labour market inequality? |
| Journal: | Scandinavian Journal of Economics
2009 : VOL. 111:1, p. 51-71 |
| Index terms: | labour markets inequality discrimination equal pay legislation models |
| Freeterms: | monopsonistic competition |
| Language: | eng |
| Abstract: | In this paper, a labour market model of monopsonistic competition is considered with taste-based discrimination (henceforth as: dscrn.) against minority workers in order to study the effect of equal pay legislation (as: legln.) on labour market inequality. When the taste for dscrn. is small or competition is weak, the policy removes job segregation and the wage gap completely. However, with a bigger taste for dscrn. or stronger competition, equal pay legln. leads to more job segregation, and sometimes minority workers end up earning less than before etc. |
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