Discrimination can be define as the wrongful act of distinguishing illicitly or illegally among people not on the basis of individual merit, but on the basis of prejudice or some invidious, unpleasant or morally reprehensible or wrong attitude. The main economic definition of “employment discrimination” implies that it is efficient and leads to unusual and narrow empirical methods. From a legal perspective one can note that this definition does not advance equality. Other such definitions relate discrimination to specific market failures. This paper argues that economic theory could base its definition on the fundamental theorem of welfare economics and market functionality. Since society constitutes markets by use of law, this definition indicates some additional legal means to address problems of discrimination. Gary Becker defined employment discrimination as different pay for equally productive individuals (based upon membership in a certain group).Becker’s definition cited the cause for unequal pay as discriminatory tastes. Others argued that there may be another cause at times: some information problems that are correlated with the said social groups.
The discrimination in employment must involve 3 elements. First, it is a decision against one or more employees/prospective employees that is not based on individual merits (ability to perform job,) or other morally legitimate qualifications. Second, the decision derives solely or in part from racial or sexual prejudice, false stereotypes, or some other kind of morally unjustified attitude against members of the class to which the employee belongs. Third, the decision has a harmful or negative impact on the interests of the employees, (no job, no promotion or pay rise) Reference
(Business Ethics 7th edition by Manuel G. Velasquez 2012)
EMPLOYMENT DISCRIMINATION: SOME ECONOMIC DEFINITIONS, CRITIQUE AND LEGAL IMPLICATIONS by GARY S. BECKER....