ABSTRACT

In Poverty and Discrimination 1 Lester Thurow presents a model of economic discrimination which builds on some principles devised by Gary Becker in The Economics of Discrimination. 2 The purpose of the present chapter is to discuss some of Thurow's results in a slightly different formulation and compare them with the case where there are substitution possibilities between different types of labor. Let us begin with a presentation of Thurow's model.