Inequality Isn’t Just Due to Market Forces — It’s Caused by Decisions the Boss Makes, Too

In 1980, Jim Baron, now a professor at the Yale School of Management, and William Bielby, now a professor at the University of Illinois, published a seminal article on firms and inequality. In it, the authors, both sociologists, made a compelling argument that, to understand labor market outcomes like inequality, it wasn’t enough to look at the supply and demand for individuals’ skills. We should also look, they argued, at the decisions made by firms.

"Inequality Isn’t Just Due to Market Forces — It’s Caused by Decisions the Boss Makes, Too" is from hbr.org, published on March 30, 2017.