The Labor Market Implications of an Economy-Wide Affirmative Action Program.

Analyzes some of the economic implications of an economy-wide affirmative action program requiring that minority and majority workers in the same job classification receive the same wage. The program also specifies a minimum minority/majority employment ratio for each job classification. A variety of cases are considered ranging from an assumption of pre-existent discrimination where minority workers receive lower wages than similarly skilled majority workers to cases of no discrimination. Quotas are alternatively specified above, below, and just equal to available supplies of minority workers. In all of these cases, theoretical implications are supplemented with numerical examples. Finally, short-run implications for changes in income distributions are contrasted to longer-run implications for skill distributions. The objective is to describe the maximum potential impact of economy-wide action in contrast to effects associated with present policies that are restricted to government contractors where employment ratios are "targets," and compliance requires demonstration of "good faith" efforts. 30 pp. Ref.