RACE, COMPETITION AND DIFFERENTIAL WAGES

This paper develops a competitive model of racial wage and employment discrimination. Discrimination is a persistent outcome of the interact ion of two phenomena. The first is the adverse effect of racial confli ct on the organisational strength of workers which, in turn, affects t he formation of wage differentials. This is a class struggle effect. T he second is the negative correlation between the interracial employme nt ratio and the wage differential, within occupations and across all capitals. This is a racial exclusion effect. The interaction of the cl ass struggle and racial exclusion effects implies persistent discrimin ation. (C) 1995 Academic Press Limited