Berson, Clémence - In: IZA Journal of Labor Economics 5 (2016) 5, pp. 1-29
This article appeals to heterogeneity in workers' non-wage preferences to model taste-based discrimination. Firms hire … both types of workers and pay lower wages to minority workers, whatever their taste for discrimination. A single prejudiced … firm in the market produces a substantial wage gap in all firms. Consequently, discrimination allows unprejudiced firms to …