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Discrimination and Workers' Expectations

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  • Filippin, Antonio

    (European University Institute)

Abstract

The paper explores the role of workers' expectations as am original explanation for the puzzling long run persistence of discrimination against some minorities in the labor market. A game of incomplete information is presented, showing that ex ante identical groups of workers may be characterized by unequal outcomes in equilibrium due to their different beliefs, even though discriminatory tastes and statistical discrimination by employers have disappeared. Wrong beliefs of being discriminated against are self-confirming in this circumstance, being the ultimate cause of a lower percentage of promotions which supports these wrong beliefs.

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Bibliographic Info

Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2003 with number 78.

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Date of creation: 04 Jun 2003
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Handle: RePEc:ecj:ac2003:78

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Keywords: discrimination; workers' expectations; self-confirming beliefs;

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  1. O'Keeffe, Mary & Viscusi, W Kip & Zeckhauser, Richard J, 1984. "Economic Contests: Comparative Reward Schemes," Journal of Labor Economics, University of Chicago Press, vol. 2(1), pages 27-56, January.
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  3. Eddie Dekel & Drew Fudenberg & David K. Levine, 2001. "Learning to Play Bayesian Games," Harvard Institute of Economic Research Working Papers 1926, Harvard - Institute of Economic Research.
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  5. Drew Fudenberg & David K. Levine, 1993. "Self-Confirming Equilibrium," Levine's Working Paper Archive 2147, David K. Levine.
  6. Dennis J. Aigner & Glen G. Cain, 1977. "Statistical theories of discrimination in labor markets," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 30(2), pages 175-187, January.
  7. Filippin, Antonio, 2003. "Discrimination and Workers' Expectations: Experimental Evidence," IZA Discussion Papers 824, Institute for the Study of Labor (IZA).
  8. Moro,A. & Norman,P., 2001. "A general equilibrium model of statistical discrimination," Working papers 4, Wisconsin Madison - Social Systems.
  9. Mincer, Jacob & Polachek, Solomon, 1974. "Family Investment in Human Capital: Earnings of Women," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages S76-S108, Part II, .
  10. Andrew Schotter & Allan Corns, 1999. "Can Affirmative Action Be Cost Effective? An Experimental Examination of Price-Preference Auctions," American Economic Review, American Economic Association, vol. 89(1), pages 291-305, March.
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  12. Schotter, Andrew & Weigelt, Keith, 1992. "Asymmetric Tournaments, Equal Opportunity Laws, and Affirmative Action: Some Experimental Results," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 511-39, May.
  13. Filippin, Antonio & Ichino, Andrea, 2003. "Gender Wage Gap in Expectations and Realizations," IZA Discussion Papers 825, Institute for the Study of Labor (IZA).
  14. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-61, September.
  15. Richard Breen & Cecilia Garcia-Penalosa, 2002. "Bayesian Learning and Gender Segregation," Journal of Labor Economics, University of Chicago Press, vol. 20(4), pages 899-922, October.
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Cited by:
  1. Antonio FILIPPIN & Francesco GUALA, 2011. "Costless discrimination and unequal achievements in a labour market experiment," Departmental Working Papers 2011-30, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  2. Antonio Filippin & Francesco Guala, 2013. "Costless discrimination and unequal achievements in an experimental tournament," Experimental Economics, Springer, vol. 16(3), pages 285-305, September.
  3. Filippin, Antonio & Ichino, Andrea, 2003. "Gender Wage Gap in Expectations and Realizations," IZA Discussion Papers 825, Institute for the Study of Labor (IZA).
  4. Filippin, Antonio, 2003. "Discrimination and Workers' Expectations: Experimental Evidence," IZA Discussion Papers 824, Institute for the Study of Labor (IZA).

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