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Discrimination and workers' expectations: experimental evidence

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  • Antonio Filippin

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Abstract

This paper is an experimental analysis of the role played by workers' expectations in explaining the puzzling long-run persistence of observed discrimination against certain minorities in the labor market. The experiment provides some evidence supporting the theoretical prediction that unequal outcomes may emerge due to disadvantaged workers' wrong expectations of being discriminated against. However, this effect is not long-lasting, since players learn the true state of nature in later stages of the experiment, failing to generate a Self-Confirming Equilibrium driven by wrong beliefs. The strategy method provides additional evidence that expectations matter.

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File URL: http://wp.demm.unimi.it/tl_files/wp/2003/DEMM-2003_016wp.pdf
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Bibliographic Info

Paper provided by Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano in its series Departmental Working Papers with number 2003-16.

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Date of creation: 01 Jan 2003
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Handle: RePEc:mil:wpdepa:2003-16

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Keywords: Experiments; Discrimination; Workers' Expectations.;

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References

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Cited by:
  1. Filippin, Antonio, 2003. "Discrimination and Workers' Expectations," Royal Economic Society Annual Conference 2003 78, Royal Economic Society.
  2. Filippin, Antonio & Ichino, Andrea, 2003. "Gender Wage Gap in Expectations and Realizations," IZA Discussion Papers 825, Institute for the Study of Labor (IZA).

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