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Information, Discrimination and the Long Run

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  • Benoit S. Y. CRUTZEN
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    Abstract

    This note studies the long-run behaviour of wages for two groups of workers in a stochastic matching model. The quality of the match is modeled as a Brownian motion with drift. Groups differ in the speed at which information relative to the quality of the match is revealed. The note shows that the expected cross-group wage differential for workers having never quit their job is everywhere at the favoured group's advantage.

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    File URL: http://www.jstor.org/stable/20079059
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    Bibliographic Info

    Article provided by ENSAE in its journal Annals of Economics and Statistics.

    Volume (Year): (2003)
    Issue (Month): 71-72 ()
    Pages: 363-376
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    Handle: RePEc:adr:anecst:y:2003:i:71-72:p:14

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