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Juan Gabriel Rodriguez, Rafael Salas and Juan Prieto-Rodriguez
''A theoretical model of wage discrimination with inspection fines''
( 2008, Vol. 10 No.3 )
In neoclassical models, workers are classified a priori into discrimination groups. We develop a probabilistic model of wage discrimination in which workers need not be classified a priori. Our model is a generalization of the standard framework, whereas Becker's model is an extreme case. A second implication is that the traditional approach to measuring discrimination (the Oaxaca–Blinder approach) must be modified to take into account this probabilistic framework.
JEL: J7 - Labor Discrimination: General
J6 - Mobility, Unemployment, and Vacancies: General
Manuscript Received : Sep 24 2007 Manuscript Accepted : Mar 12 2008

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