TY  - RPRT
        AU  - Salamanca, Nicolás
AU  - Feld, Jan
        TI  - A Short Note on Discrimination and Favoritism in the Labor Market
        PY  - 2016/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 10291
        UR  - https://www.iza.org/publications/dp10291
        AB  - 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.
        KW  - firm preferences
KW  - nepotism
KW  - wage gap
KW  - long-run equilibrium
        ER  -