Abstract
Critics of anti-discrimination policies argue that such policies are inefficient, because firms in a free-market system hire to maximize their profits and therefore discrimination only occurs to the extent it is rational. Conversely, this Article argues that gender discrimination results even when individuals and firms behave rationally without discriminatory intent, because of incomplete information problems that lead to statistical discrimination - a phenomenon which is exacerbated by a federal tax code that rewards single-earner households. This Article proposes a partial repeal of Title VII and higher taxes on married men, to the end of increasing utility and efficiency in labor markets.
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