Salamanca, NicolasFeld, Jan2016-10-262022-07-072016-10-262022-07-0720162016https://ir.wgtn.ac.nz/handle/123456789/19543We extend Becker’s model of discrimination by allowing firms to have discriminatory and favoring preferences simultaneously. We draw the two-preference parallel for the marginal firm, illustrate the implications for wage differentials, and consider the implied long-run equilibrium. In the short-run, wage differentials depend on relative preferences. However, in the long-run, market forces drive out discriminatory but not favoring firms.pdfen-NZWage gapNepotismFirm preferencesLong-run equilibriumTexthttp://www.victoria.ac.nz/sef/research/sef-working-papers