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An equilibrium search-matching model of discrimination

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  • Rosen, Asa

Abstract

A model in which firms have incomplete information about workers at the hiring stage is shown to entail discrimination as the unique stable equilibrium outcome, even if no agents have a taste for discrimination. Discriminated groups (e.g., blacks, women) earn lower wages, endure longer unemployment spells, and must satisfy stricter requirements in order to obtain work.
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  • Rosen, Asa, 1997. "An equilibrium search-matching model of discrimination," European Economic Review, Elsevier, vol. 41(8), pages 1589-1613, August.
    • Handle: RePEc:eee:eecrev:v:41:y:1997:i:8:p:1589-1613
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    References listed on IDEAS

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