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Identification, screening and stereotyping in labour market discrimination

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  • Maarten Vendrik

    ()

  • Christiane Schwieren

Abstract

According to social-psychological research, feelings of uncertainty in decision-making evoke two opposite responses: (i) reduction of uncertainty by information search, leading to less stereotyping of people, and hence less discrimination; (ii) social identification with an ingroup, inducing more reliance on stereotypic perceptions and prejudices, and hence more discrimination against an outgroup. We integrate both responses in a microeconomic model of hiring and pay decisions by an employer. Increasing competition in the product market makes the employer feel more uncertain about his profits, but also raises the opportunity cost of screening expenditures. This elicits substitution of ingroup identification for screening expenditures, and hence enhances discrimination.

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Bibliographic Info

Article provided by Springer in its journal Journal of Economics.

Volume (Year): 99 (2010)
Issue (Month): 2 (March)
Pages: 141-171

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Handle: RePEc:kap:jeczfn:v:99:y:2010:i:2:p:141-171

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Web page: http://www.springerlink.com/link.asp?id=108909

Related research

Keywords: Discrimination; Stereotyping; Social identity; Uncertainty; Screening; J7; M51;

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References

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Cited by:
  1. Corneo, Giacomo, 2010. "Nationalism, cognitive ability, and interpersonal relations," Discussion Papers 2010/5, Free University Berlin, School of Business & Economics.
  2. Minas Vlassis & Nick Drydakis, 2012. "Wage discrimination and antidiscrimination policy in unionized industries," Journal of Economics, Springer, vol. 105(1), pages 45-62, January.

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