Understanding socio-demographic disparities in the labor market: the case for a motivation-based theory

This paper puts the empirical case for a motivation-based theory of socio-demographic disparities in the labor market. We first present the basic knowledge as regards earnings disparities in the labor market and sum up the classic assessment of the theoretical literature focusing on pure pay discrimination. We then make an attempt to demonstrate that the relevant issues as regards socio-demographic disparities in the labor market, are rather hiring discrimination and, above all, occupational segregation. In this spirit, we have provided in an early work a motivation-based theory of hiring discrimination suggesting a particular pattern of socio-demographic occupational segregation. We check what our model suggests both against statistical and micro evidence. We end with a discussion of the links between our approach and dominant existing theories