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Discrimination and job-uncertainty

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  • P. Frijters

    (Tinbergen Institute Amsterdam)

Abstract

In this paper I look at the possibility of encorporating group behaviour into a model of the labour market by showing that discrimination can be the result of competition between coalitions of workers and bosses for a scarce amount of jobs. Coalitions can form either on the basis of the productivity of the individual members or on the basis of a recognisable characteristic. If the probability of correctly assessing the productivity of individual workers decreases, coalition-formation on the basis of recognisable characteristics becomes relatively more rewarding than coalition forming on the basis of productivity. I thus identify the conditions under which each individual in the endogeneously defined group actively discriminates persons with different recognisable characteristics, independent of productivity.

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Bibliographic Info

Paper provided by EconWPA in its series Labor and Demography with number 9706001.

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Date of creation: 05 Jun 1997
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Handle: RePEc:wpa:wuwpla:9706001

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References

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  1. Bernheim, B. Douglas & Whinston, Michael D., 1987. "Coalition-Proof Nash Equilibria II. Applications," Journal of Economic Theory, Elsevier, vol. 42(1), pages 13-29, June.
  2. Gottfries, N. & McCormick, B., 1993. "Discrimination and open unemployment in a segmented labour market," Discussion Paper Series In Economics And Econometrics 9320, Economics Division, School of Social Sciences, University of Southampton.
  3. Coate, S. & Loury, G.C., 1992. "Will Affirmative Action Policies Eliminate Negative Stereotypes?," Papers 3, Boston University - Department of Economics.
  4. Phelps, Charlotte D., 1988. "Caring and family income," Journal of Economic Behavior & Organization, Elsevier, vol. 10(1), pages 83-98, July.
  5. Bernheim, B. Douglas & Peleg, Bezalel & Whinston, Michael D., 1987. "Coalition-Proof Nash Equilibria I. Concepts," Journal of Economic Theory, Elsevier, vol. 42(1), pages 1-12, June.
  6. Dale T. Mortensen, 1979. "The Matching Process as a Non-Cooperative/Bargaining Game," Discussion Papers 384, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  7. Lazear, Edward P & Rosen, Sherwin, 1990. "Male-Female Wage Differentials in Job Ladders," Journal of Labor Economics, University of Chicago Press, vol. 8(1), pages S106-23, January.
  8. Rosen, Asa, 1997. "An equilibrium search-matching model of discrimination," European Economic Review, Elsevier, vol. 41(8), pages 1589-1613, August.
  9. Diamond, Peter A, 1982. "Wage Determination and Efficiency in Search Equilibrium," Review of Economic Studies, Wiley Blackwell, vol. 49(2), pages 217-27, April.
  10. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-61, September.
  11. Renes, Gusta & Ridder, Geert, 1995. "Are women overqualified," Labour Economics, Elsevier, vol. 2(1), pages 3-18, March.
  12. Kremer, Michael, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 551-75, August.
  13. Lang, Kevin, 1986. "A Language Theory of Discrimination," The Quarterly Journal of Economics, MIT Press, vol. 101(2), pages 363-82, May.
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Citations

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Cited by:
  1. Frijters, Paul, 1999. "A three-factor search model," Economics Letters, Elsevier, vol. 64(3), pages 319-324, September.
  2. Paul Frijters, 2003. "Testing for Employee Discrimination using Matched Employer-Employee Data: Theory and Evidence," Paul Frijters Discussion Papers 2003-1, School of Economics and Finance, Queensland University of Technology.
  3. Heather Antecol & Deborah A. Cobb-Clark, 2008. "The Effect of Community-Level Socio-Economic Conditions on Threatening Racial Encounters," CEPR Discussion Papers 589, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  4. Antecol, Heather & Cobb-Clark, Deborah A., 2008. "Racial and ethnic discrimination in local consumer markets: Exploiting the army's procedures for matching personnel to duty locations," Journal of Urban Economics, Elsevier, vol. 64(2), pages 496-509, September.
  5. Antecol, Heather & Cobb-Clark, Deborah A., 2008. "Identity and racial harassment," Journal of Economic Behavior & Organization, Elsevier, vol. 66(3-4), pages 529-557, June.
  6. Bart Hobijn & Carlos A. Medina-Durango, 2000. "Is Discrimination Due to a Coordination Failure?," Econometric Society World Congress 2000 Contributed Papers 1758, Econometric Society.
  7. 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.
  8. Paul Frijters & Michael A. Shields & Stephen Wheatley Price & Nikolaos Theodoropoulos, 2006. "Testing for Employee Discrimination in Britain using Matched Employer-Employee Data," University of Cyprus Working Papers in Economics 8-2006, University of Cyprus Department of Economics.

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