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Key Concepts
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Comparable Worth  The notion that workers should receive the same pay for different jobs if these jobs require the same level of skill, effort, and responsibility and the working conditions in the two jobs are comparable. It is primarily designed to address possible inequities that arise from the fact that women are frequently employed in low-paying occupations relative to men.
Consumer Discrimination  A type of discrimination where the source of the prejudice is the consumer (i.e., the consumer has a taste for discrimination).
Discrimination Coefficient  The percentage "markup" in the cost of hiring a black worker attributable to the employer's prejudice.
Employee Discrimination  A type of discrimination where the source of the prejudice is the employee (i.e., the employee has a taste for discrimination).
Employer Discrimination  A type of discrimination where the source of the prejudice is the employer (i.e., the employer has a taste for discrimination).
Nepotism  A preference by an employer for hiring employees that share a common attribute that does not affect their productivity on the job (e.g., a relative or family member) which is manifested in the employer acting "as if" the wage of workers from the preferred group is lower than what is truly paid by the firm.
Oaxaca Decomposition  A method of decomposing the raw wage differential between groups of workers (e.g., men and women) into a portion that arises because of differences in skills and a portion due to labor market discrimination.
Occupational Crowding  A discrimination-based explanation of the observed occupational segregation of men and women; women, through processes such as social norms, are "crowded" into a relatively small number of occupations, which reduces the wage of "female-type" jobs and generates a gender wage gap.
Statistical Discrimination  Judging an individual on the basis of the average characteristics of the group to which he or she belongs (e.g., gender, race and age) rather than upon his or her own personal characteristics.
Taste Discrimination  The notion of discrimination as a preference; this preference can be held by employers, employees, or customers.







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