%0 Report
        %A Salamanca, Nicolás
%A Feld, Jan
        %T A Short Note on Discrimination and Favoritism in the Labor Market
        %D 2016
        %8 2016 Oct
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 10291
        %U https://www.iza.org/index.php/publications/dp10291
        %X We extend Becker's model of discrimination by allowing firms to have discriminatory and favoring preferences simultaneously. We draw the two-preference parallel for the marginal firm, illustrate the implications for wage differentials, and consider the implied long-run equilibrium. In the short-run, wage differentials depend on relative preferences. However, in the long-run, market forces drive out discriminatory but not favoring firms.
        %K firm preferences
%K nepotism
%K wage gap
%K long-run equilibrium