Discrimination has long been a central topic in the study of labour markets and economic behaviour, with economists attempting to understand not only its moral and social implications but also its economic causes and consequences. At its core, the economics of discrimination explores how differences in treatment based on race, gender, ethnicity, or other characteristics affect employment, wages, and productivity, and how market forces interact with these behaviours. The field was first formalised in Gary Becker’s The Economics of Discrimination (1957), which applied the tools of microeconomics to the question of why discrimination persists and under what conditions it might diminish. Later contributions, including those of Thomas Sowell, further investigated the incentives shaping discriminatory practices and the economic outcomes across different groups.
Read MoreI have been inspired, by listening to recent conversations on the Glenn Show, to delve into the writings of Thomas Sowell. This is a daunting task since the man has written a huge number of books, articles and essays. The Thomas Sowell Reader, however, seems to be a representative collection and a decent place to start. I am enjoying the reading experience so far. TS writes from a conservative, and fiercely pro-free market, perspective, at least in this the volume mentioned above. This invariably will put some readers off. But you’d be hard pressed to find a better example of punchy, yet eloquent, non-technical exposition of economics, social and political issues. The essay on the economics of discrimination and the small tract on “unfunded mandates” are particularly feisty and enjoyable.
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