An equilibrium search-matching model of discrimination
Abstract
A model in which firms have incomplete information about workers at the hiring stage is shown to entail discrimination as the unique stable equilibrium outcome, even if no agents have a taste for discrimination. Discriminated groups (e.g., blacks, women) earn lower wages, endure longer unemployment spells, and must satisfy stricter requirements in order to obtain workSimilar works
This paper was published in LSE Research Online.
Having an issue?
Is data on this page outdated, violates copyrights or anything else? Report the problem now and we will take corresponding actions after reviewing your request.