ABSTRACT

In her book The Economics of Sex Discrimination Janice Fanning Madden makes a distinction between 'wage discrimination, which occurs when wage differentials are not based on relative productivity differences', and 'occupational discrimination, which occurs when criteria other than productivity determine the quantity of a factor employed in a given occupation', 1 and criticizes the 'competitive' approach to the analysis of discrimination to a problem of wage disciimination' 2 for restricting 'the problems of discrimination to a problem of wage discrimination', 3 while neglecting 'discrimination which created entry barriers to high paying occupations. While perfectly competitive models explain some of the former discrimination, they are impotent in explaining the latter.' 4