Racial Disparity in Unemployment
AbstractIn the United States, black workers earn less than their white counterparts and have higher rates of unemployment. Empirical work indicates that most of this wage gap is accounted for by differences in cognitive skills that emerge at an early age. In this paper, we demonstrate that the same is not true for black-white disparity in unemployment. A large unexplained unemployment differential motivates the paper's second contribution-—a potential theoretical explanation. This explanation is built around a model that embeds statistical discrimination into the subjective worker evaluation process that lies at the root of the efficiency-wage theory of equilibrium unemployment. © 2011 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.
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Bibliographic InfoArticle provided by MIT Press in its journal The Review of Economics and Statistics.
Volume (Year): 93 (2011)
Issue (Month): 1 (February)
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- Donald Freeman, 2011.
"On (not) Closing the Gaps: The Evolution of National and Regional Unemployment Rates by Race and Ethnicity,"
1101, Sam Houston State University, Department of Economics and International Business.
- Donald Freeman, 2012. "On (Not) Closing the Gaps: The Evolution of National and Regional Unemployment Rates by Race and Ethnicity," The Review of Black Political Economy, Springer, vol. 39(2), pages 267-284, June.
- Pablo Lavado & Luciana Velarde & Gustavo Yamada, 2013.
"Habilidades No Cognitivas y Brecha de Género Salarial en el Perú,"
13-16, Departamento de Economía, Universidad del Pacífico, revised Dec 2013.
- Yamada, Gustavo & Lavado, Pablo & Velarde, Luciana, 2013. "Habilidades No Cognitivas y Brecha de Género Salarial en el Perú," Working Papers 2013-014, Banco Central de Reserva del Perú.
- David W. Johnston & Grace Lordan, 2014. "When Work Disappears: Racial Prejudice and Recession Labour Market Penalties," CEP Discussion Papers dp1257, Centre for Economic Performance, LSE.
- Merlino, Luca Paolo, 2012. "Discrimination, technology and unemployment," Labour Economics, Elsevier, vol. 19(4), pages 557-567.
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