Employment Discrimination

Encyclopedia of Law and Economics (2000): 1

22 Pages Posted: 23 Dec 2015

Multiple version iconThere are 2 versions of this paper

Date Written: 2000


This article first parses the multiple overlapping definitions of discrimination, including distinctions between group and individual discrimination and between segregation and discrimination in pay. The article then summarizes the major economic models of discrimination, particularly Becker’s taste-for-discrimination model and statistical-discrimination models, as well as sorting the status-production models. The discussion focuses on the conditions under which markets will tend to eliminate discrimination, noting that this occurs in a more limited range of situations than commonly recognized. The article next surveys the economic role of anti-discrimination laws, evaluating arguments that the law speeds the journey to a non-discriminatory equilibrium and that the law breaks social norms perpetuating inefficient discrimination. Finally, the article examines empirical studies of employment discrimination laws, including analyses of litigation trends and of the laws’ effects on labor markets.

Keywords: employment discrimination laws, labor markets, litigation, discrimination, segregation, statistical discrimination, status-production model

Suggested Citation

Schwab, Stewart Jon, Employment Discrimination (2000). Encyclopedia of Law and Economics (2000): 1, Available at SSRN: https://ssrn.com/abstract=2706698

Stewart Jon Schwab (Contact Author)

Cornell Law School ( email )

Myron Taylor Hall
Ithaca, NY 14853
United States
607.255.8584 (Phone)
607-255-7193 (Fax)

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