In the labor economics literature, discrimination is often defined as occurring when identically productive workers, placed in the same working conditions, are assigned contracts involving, in particular, different hourly wage rates. This paper applies contract theory to explain how in some...

In the labor economics literature, discrimination is often defined as a situation in which identically productive workers, placed in the same working conditions, are treated unequally, being assigned contracts involving in particular different hourly wage rates. In the proposed analysis, the...