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Yeung-Nan Shieh
''Monopsonistic wage discrimination and employment effect under conditions of constant labor supply elasticity''
( 2006, Vol. 4 No.32 )
This note exploits an alternative but simple way to examine the employment effect of wage discrimination when the constant elasticity labor supply curves are strictly concave. The Bernoulli inequality applied in this paper allows us to show that wage discrimination increases total employment in a relative simple way, without resorting to complicated manipulations as were used by Formby, Layson and Smith (1983) and Shieh (2001).
Keywords: Bernoulli inequality
JEL: D4 - Market Structure and Pricing: General
J7 - Labor Discrimination: General
Manuscript Received : Oct 02 2006 Manuscript Accepted : Oct 03 2006

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