Some Models of Racial Discrimination in the Labor Market

by Kenneth Arrow

Download

Download eBook for Free

FormatFile SizeNotes
PDF file 2 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

Purchase

Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback60 pages $15.00 $12.00 20% Web Discount

Part of a RAND study on the measurement of racial discrimination in the economic sphere. Although neoclassical theory can offer a coherent and plausible explanation of the impact of racial discrimination and accounts in a gross way for the known facts, some problems remain. This Memorandum describes a simple model by which an employer can purchase black labor at a fixed price; for this labor he must choose some point on an indifference curve between wages and the proportion of whites in the firm. The implications — no wage differentials on the one hand and segregation on the other — are respectively contrary to and harmonious with observation. Thus, there is a failure of convexity — extreme alternatives are preferred to compromises. Technical analysis of the model is presented in notes following the text.

This report is part of the RAND Corporation research memorandum series. The Research Memorandum was a product of the RAND Corporation from 1948 to 1973 that represented working papers meant to report current results of RAND research to appropriate audiences.

This research in the public interest was supported by RAND, using discretionary funds made possible by the generosity of RAND's donors, the fees earned on client-funded research, and independent research and development (IR&D) funds provided by the Department of Defense.

Permission is given to duplicate this electronic document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND PDFs to a non-RAND Web site is prohibited. RAND PDFs are protected under copyright law. For information on reprint and linking permissions, please visit the RAND Permissions page.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.