On Intersectionalities and Employer Concerns in the Context of Becker’s Model of Discrimination

Abstract

Becker’s (1957, 1971) theory of discrimination set the stage for much of the literature on discrimination and disparities in labor markets over the last half-century. While the simplifying assumptions of Becker’s model are hardly descriptive of real labor markets, the model still provides a reference framework for an examination of group-based wage differentials. In that context, this paper examines how different assumptions about the nature of Becker’s discriminatory coefficient and about employer concerns would affect the predictions of Becker’s model. In particular, intersectional concerns and employment screening would make employment decisions far more complex than Becker’s original model suggests. Most importantly, employers are likely to look beyond larger ethnic and racial groups in their hiring decisions. As a result, based on intersectional issues, we might see some members of a minority group face a positive discriminatory coefficient while other members of the same group might face a negative one.