Question

Explain theories related to Labour Market discrimination and Exploitation.

06 Sep 2025
Answer :
Word Count : 1096
Labour market discrimination and exploitation have been central concerns in understanding gender issues in work, employment, and productivity. Discrimination in labour markets refers to the systematic differential treatment of individuals based on characteristics such as gender, race, or ethnicity, which affects their access to employment opportunities, wages, promotions, and working conditions. Exploitation, on the other hand, occurs when workers are undercompensated for the value they create, often due to structural inequalities or power imbalances between employers and employees. Several economic and sociological theories have been developed to explain these phenomena, particularly in relation to gendered labour disparities. One of the most widely cited theories is the Neoclassical Economic Theory of Discrimination, introduced by Gary Becker in the 1950s. Becker argued that discrimination in labour markets arises from individual prejudices of employers, employees, or customers who are willing to pay a premium to avoid working with certain groups. According to this model, gender discrimination can result in women being offered lower wages or fewer employment opportunities not because of differences in productivity, but because employers or co-workers harbor biases against them. Becker’s theory suggests that market forces can potentially reduce discrimination over time, as firms that discriminate may incur higher costs, giving non-discriminating firms a competitive advantage. However, empirical evidence often shows persistent gender wage gaps and occupational segregation, indicating __________ _______ _________ _______ ____ _________ ____ _________ ____ ___.
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