Can Workers' Expectations Account for the Persistence of Discrimination?
AbstractThe paper explains how workers' expectations of being discriminated against can be self-confirming, accounting for the persistence of unequal outcomes in the labour market even beyond the causes that originally generated them. The theoretical framework used is a two-stage game of incomplete information in which one employer promotes only one among two workers after having observed their productivity, which is used as a signal of their ability. Workers who expect to be discriminated against exert a lower effort on average, because of a lower expected return, thereby being promoted less frequently even by unbiased employers. This implies that achievements of minority groups may not improve when the fraction of discriminatory employers actually decreases, and such a mechanism is robust both to trial work periods and to affirmative actions like quotas.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4490.
Length: 29 pages
Date of creation: Oct 2009
Date of revision:
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Find related papers by JEL classification:
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-11-07 (All new papers)
- NEP-CTA-2009-11-07 (Contract Theory & Applications)
- NEP-LAB-2009-11-07 (Labour Economics)
You can help add them by filling out this form.
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- 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.
- Filippin, Antonio & Guala, Francesco, 2011. "Costless Discrimination and Unequal Achievements in a Labour Market Experiment," IZA Discussion Papers 6187, Institute for the Study of Labor (IZA).
- Stijn BAERT & Bart COCKX, 2013.
"Pure Ethnic Gaps in Educational Attainment and School to Work Transitions. When Do They Arise?,"
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales)
2013005, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Baert, Stijn & Cockx, Bart, 2013. "Pure ethnic gaps in educational attainment and school to work transitions: When do they arise?," Economics of Education Review, Elsevier, vol. 36(C), pages 276-294.
- Baert, Stijn & Cockx, Bart, 2013. "Pure Ethnic Gaps in Educational Attainment and School to Work Transitions: When Do They Arise?," IZA Discussion Papers 7262, Institute for the Study of Labor (IZA).
- S. Baert & B. Cockx, 2013. "Pure Ethnic Gaps in Educational Attainment and School to Work Transitions. When Do They Arise?," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 13/832, Ghent University, Faculty of Economics and Business Administration.
- Stijn Baert & Bart Cockx, 2013. "Pure Ethnic Gaps in Educational Attainment and School to Work Transitions. When do they Arise?," CESifo Working Paper Series 4162, CESifo Group Munich.
- Vincent Corluy & Gerlinde Verbist, 2014. "Can education bridge the gap? Education and the employment position of immigrants in Belgium," ImPRovE Working Papers 14/02, Herman Deleeck Centre for Social Policy, University of Antwerp.
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