Title

Job Discrimination, Market Forces and the Invisibility Hypothesis

Document Type

Discussion Paper

Publication Date

6-1-1984

CFDP Number

708R

CFDP Revision Date

1985-06-01

CFDP Pages

42

Abstract

The Invisibility Hypothesis holds that the job skills of disadvantaged workers are not easily discovered by potential new employers, but that promotion enhances visibility and alleviates this problem. Then, at a competitive labor market equilibrium, firms profit by hiding talented disadvantaged workers in low level jobs. Consequently, those workers are paid less on average and promoted less often than others with the same education and ability. As a result of the inefficient and discriminatory wage and promotion policies, disadvantaged workers experience lower returns to investments in human capital than other workers.

This document is currently not available here.

Share

COinS