In this lecture I first give an explanation for invidious preferences based on the (evolutionary) competition for resources. Then I show that these preferences have wide ranging and empirically relevant effects on labor markets, such as: workplace skill segregation, gradual promotions, wage...

Globalization, Interstate Competition, and Labor -- The State Role in Labor Costs -- Explaining State Differences in Labor Cost Trends -- The Economic Effects of Cutting Labor Costs -- Social and Political Consequences of Declining Labor Costs -- Conclusion