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An Equilibrium Search Model with Co-Worker Discrimination

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  • Masaru Sasaki

    (Georgetown University)

Abstract

This paper analyzes the effect of co-worker discrimination on wage and unemployment differentials between males and females using a search model. In the presence of asymmetric co- worker discrimination, no female-dominated firm emerges in the labor market. An increase in female participation drives up the wage offer to female workers and raises female employment Moreover, an increase in the degree of discrimination by males results in gains to them in terms of higher wages and lower unemployment but results in losses to females in terms of lower wages and higher unemployment. The benefit to males provides an explanation for the persistence of discrimination.

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File URL: http://128.118.178.162/eps/lab/papers/9802/9802001.ps.gz
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Bibliographic Info

Paper provided by EconWPA in its series Labor and Demography with number 9802001.

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Length: 47 pages
Date of creation: 11 Feb 1998
Date of revision:
Handle: RePEc:wpa:wuwpla:9802001

Note: Type of Document - WordPerfect; prepared on IBM PC; to print on HP; pages: 47 ; figures: included. I thank James Albrecht, Mitsuhiro Kaneda, Ivan Pastine, Susan Vroman, and the participants in seminars at Georgetown and the Kansai Labor Economics Group for helpful comments and discussion.
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Cited by:
  1. Kevin Lang & Jee-Yeon K. Lehmann, 2012. "Racial Discrimination in the Labor Market: Theory and Empirics," Journal of Economic Literature, American Economic Association, vol. 50(4), pages 959-1006, December.
  2. Luca Flabbi, 2010. "Gender Discrimination Estimation In A Search Model With Matching And Bargaining," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(3), pages 745-783, 08.
  3. Esther Hauk & Hannes Mueller, 2010. "Cultural Leaders and the Clash of Civilizations," Working Papers 481, Barcelona Graduate School of Economics.
  4. Kunze, Astrid & Troske, Kenneth R., 2012. "Life-cycle patterns in male/female differences in job search," Labour Economics, Elsevier, vol. 19(2), pages 176-185.
  5. G. Sulis, 2007. "Gender Wage Differentials in Italy: a Structural Estimation Approach," Working Paper CRENoS 200715, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  6. Rosen, A., 1998. "Search, Bargaining and Employer Discrimination," Papers 1998-13, Uppsala - Working Paper Series.
  7. Nathalie Havet & Catherine Sofer, 2007. "Why do women's wages increase so slowly throughout their career? A dynamic model of statistical discrimination," Post-Print halshs-00193372, HAL.
  8. Kawaguchi, Daiji, 2007. "A market test for sex discrimination: Evidence from Japanese firm-level panel data," International Journal of Industrial Organization, Elsevier, vol. 25(3), pages 441-460, June.
  9. Janssen, Simon & Tuor Sartore, Simone N. & Backes-Gellner, Uschi, 2014. "Social Attitudes on Gender Equality and Firms' Discriminatory Pay-Setting," IZA Discussion Papers 7959, Institute for the Study of Labor (IZA).

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