Search Discrimination, Human Capital Accumulation, and Intergenerational Mobility
AbstractUnequal outcomes for blacks and whites include earnings inequality, which increases with age, and differences in unemployment rates. I develop a matching model with search discrimination and human capital accumulation. Multiple equilibria exist, one with low unemployment rates and steep earnings profiles and one with high unemployment rates and flat earnings profiles. Hence, two groups of workers that differ on an observable, exogenous characteristic (say, race) can be in two different equilibria. In the high unemployment equilibrium, less vacancies are posted leading to the concept of search discrimination. A quota system can remove the discriminatory outcomes. However, if parents' investment decisions affect the investment decisions of their children, policies which remove the search discrimination through a quota system still lead to unequal results in the short run. In this case, whites may want to subsidize black investment as black investment improves the labor market outcomes for whites.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Duke University, Department of Economics in its series Working Papers with number 00-18.
Date of creation: 2000
Date of revision:
Contact details of provider:
Postal: Department of Economics Duke University 213 Social Sciences Building Box 90097 Durham, NC 27708-0097
Phone: (919) 660-1800
Fax: (919) 684-8974
Web page: http://econ.duke.edu/
Other versions of this item:
- Peter Arcidiacono, 2000. "Search Discrimination, Human Capital Accumulation and Intergenerational Mobility," Econometric Society World Congress 2000 Contributed Papers 0142, Econometric Society.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
- J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Moro, Andrea & Norman, Peter, 2003.
"Affirmative action in a competitive economy,"
Journal of Public Economics,
Elsevier, vol. 87(3-4), pages 567-594, March.
- Andrea Moro & Peter Norman, . "Affirmative Action in a Competitive Economy," Penn CARESS Working Papers ca48ba70927f48a4e11034658, Penn Economics Department.
- Andrea Moro & Peter Norman, . ""Affirmative Action in a Competitive Economy''," CARESS Working Papres 96-08, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
- Coate, Stephen & Loury, Glenn C, 1993.
"Will Affirmative-Action Policies Eliminate Negative Stereotypes?,"
American Economic Review,
American Economic Association, vol. 83(5), pages 1220-40, December.
- Coate, S. & Loury, G.C., 1992. "Will Affirmative Action Policies Eliminate Negative Stereotypes?," Papers 3, Boston University - Department of Economics.
- Richard Startz & Lundberg, .
"Private Discrimination and Social Intervention in Competitive Labor Markets,"
Rodney L. White Center for Financial Research Working Papers
19-81, Wharton School Rodney L. White Center for Financial Research.
- Lundberg, Shelly J & Startz, Richard, 1983. "Private Discrimination and Social Intervention in Competitive Labor Markets," American Economic Review, American Economic Association, vol. 73(3), pages 340-47, June.
- George J. Mailath & Larry Samuelson & Avner Shaked, .
"Endogenous Inequality in Integrated Labor Markets with Two-sided Search,"
Penn CARESS Working Papers
90ff654ed11b714e3f7530c57, Penn Economics Department.
- Larry Samuelson & George J. Mailath & Avner Shaked, 2000. "Endogenous Inequality in Integrated Labor Markets with Two-Sided Search," American Economic Review, American Economic Association, vol. 90(1), pages 46-72, March.
- George J. Mailath & Larry Samuelson & Avner Shaked, . ""Endogenous Inequality in Integrated Labor Markets with Two-sided Search''," CARESS Working Papres 98-06, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
- Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-61, September.
- Pissarides, Christopher A, 1992. "Loss of Skill during Unemployment and the Persistence of Employment Shocks," The Quarterly Journal of Economics, MIT Press, vol. 107(4), pages 1371-91, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Department of Economics Webmaster).
If references are entirely missing, you can add them using this form.