Economic and sociological views of discrimination in labor markets: Persistence or demise?

Neoclassical economic and sociological views of discrimination are compared. We summarize economic models of taste, statistical, error, and monopolistic discrimination. Economists argue that competitive market forces should lead to the demise of discrimination in the long run. After explaining these arguments, we present sociological arguments about institutional and social‐psychological mechanisms that promote the persistence of discrimination. A typology of social‐psychological feedback effects from discrimination is presented. We conclude that it is important to recognize forces promoting both the erosion and persistence of discrimination and that this requires a perspective drawing upon both sociology and economics.