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A tradable employment quota

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  • Akyol, Metin
  • Neugart, Michael
  • Pichler, Stefan

Abstract

Discrimination of women in the labor market requires appropriate policy interventions. Affirmative action policies typically advocate the introduction of an employment quota uniformly applied to all firms. In a heterogeneous labor market such a policy may yield avoidable welfare losses. We propose a tradable employment quota showing its effects on wages, employment, and welfare in a labor market with search frictions and taste discrimination. A tradable employment quota appears to be a viable alternative yielding superior labor market outcomes.

Suggested Citation

  • Akyol, Metin & Neugart, Michael & Pichler, Stefan, 2015. "A tradable employment quota," Labour Economics, Elsevier, vol. 36(C), pages 48-63.
    • Handle: RePEc:eee:labeco:v:36:y:2015:i:c:p:48-63
    DOI: 10.1016/j.labeco.2015.08.001
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    More about this item

    Keywords

    Tradable employment quota; Affirmative action policies; Taste discrimination; Labor market; Search and matching; Agent-based model;
    All these keywords.

    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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