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Selection Wages and Discrimination

By Ekkehart Schlicht


Applicants for any given job are more or less suited to fill it, and the firm will select the best among them. Increasing the wage offer attracts more applicants and makes it possible to raise the hiring standard and improve the productivity of the staff. Wages that optimize on the trade-off between the wage level and the productivity of the workforce are known as selection wages. As men react more strongly to wage differentials than females, the trade-off is more pronounced for men and a profit-maximizing firm will offer a higher wage for men than for women in equilibrium.

Topics: Volkswirtschaft, Diskussionsbeiträge, Mikroökonomik, Arbeit, Verhaltenswissenschaftliche Ökonomik, Seminar für Theorie und Politik der Einkommensverteilung (aufgelöst), ddc:300, ddc:330
Year: 2009
DOI identifier: 10.2139/ssrn.1726736
OAI identifier:
Provided by: Open Access LMU

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