Discrimination Versus Diversity: The Challenges and Opportunities

Phyllis Dirrler

doi:10.51137/ijarbm.2022.3.1.8

Abstract

Despite the controversial results of Becker (1993), there are aspects of his work, which can be considered as relevant, even in today’s globalized world. Even though, within this essay the main argument is that humans behave more irrationally than suggested by the traditional rational theory or Becker’s (1993) findings, it still needs to be highlighted that some of the problems pointed out by Becker (1993) in terms of discrimination can still be considered today, when researching diversity and conflict.

Highlights

In a rational market, employers should only consider the productivity of employees and customers only the quality of a good or service
Discrimination is based on preferences, but on other factors such as the amount of minority members and the investment of human capital. He argues that discrimination is less to not at all harmful to the majority, if they outnumber minorities significantly, because it does not have any noticeable effect on incomes or prices. He further claims that the whole concept of discrimination works, because minority members cannot provide sufficient skills so that companies could focus on only using the minority employees and highlights that the discrimination of employees and customers is even more present in the long-run and will not disappear, unless there are enough segregated markets and firms
The goal is to look for alternative explanations for the difficulties of diverse teams, with a specific focus on conflict, which go beyond a pure preference for discrimination and the lack of suffering from discrimination, as suggested amongst others by Becker (1993)

Summary

Discrimination: A Status-Quo

In a rational market, employers should only consider the productivity of employees and customers only the quality of a good or service. Discrimination is based on preferences, but on other factors such as the amount of minority members and the investment of human capital He argues that discrimination is less to not at all harmful to the majority, if they outnumber minorities significantly, because it does not have any noticeable effect on incomes or prices. He further claims that the whole concept of discrimination works, because minority members cannot provide sufficient skills so that companies could focus on only using the minority employees and highlights that the discrimination of employees and customers is even more present in the long-run and will not disappear, unless there are enough segregated markets and firms. First findings are presented on how to overcome these challenges, reaching beyond the investment in human capital

Theoretical Findings on Diversity

Diversity: A Driver for Conflict

Way to Deal With Diversity

Conclusion