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Modelling and Measuring Gains from Labour Market Desegregation in Northern Ireland

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  • Hannah KM Kling

    (Belmont Abbey College)

Abstract

Over the past decades, Catholic-Protestant relations in Northern Ireland have gradually improved. Agglomeration theories would predict that the resulting workplace desegregation would increase productivity. This paper presents a model of the impact of labour force segregation on the agglomeration benefits of matching. The paper then provides the first thorough, micro-level estimate of employment desegregation in Northern Ireland since 2001. Finally, the calibrated model estimates the effect of desegregation on output, wages, and number of firms. The model estimates that each percentage point decrease in segregation would increase net output by 0.04 per cent to 0.29 per cent.

Suggested Citation

  • Hannah KM Kling, 2020. "Modelling and Measuring Gains from Labour Market Desegregation in Northern Ireland," The Economic and Social Review, Economic and Social Studies, vol. 51(1), pages 173-187.
    • Handle: RePEc:eso:journl:v:51:y:2020:i:1:p:173-187
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    References listed on IDEAS

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    1. Juan J. Dolado & Marcel Jansen & Juan F. Jimeno, 2009. "On‐the‐Job Search in a Matching Model with Heterogeneous Jobs and Workers," Economic Journal, Royal Economic Society, vol. 119(534), pages 200-228, January.
    2. Federico Echenique & Roland G. Fryer Jr., 2005. "On the Measurement of Segregation," Labor and Demography 0503006, University Library of Munich, Germany.
    3. Tiago Cavalcanti & José Tavares, 2016. "The Output Cost of Gender Discrimination: A Model‐based Macroeconomics Estimate," Economic Journal, Royal Economic Society, vol. 126(590), pages 109-134, February.
    4. Sergio Currarini & Matthew O. Jackson & Paolo Pin, 2009. "An Economic Model of Friendship: Homophily, Minorities, and Segregation," Econometrica, Econometric Society, vol. 77(4), pages 1003-1045, July.
    5. Andersson, Fredrik & Burgess, Simon & Lane, Julia I., 2007. "Cities, matching and the productivity gains of agglomeration," Journal of Urban Economics, Elsevier, vol. 61(1), pages 112-128, January.
    6. Borooah, Vani K., 1999. "Is there a penalty to being a Catholic in Northern Ireland: an econometric analysis of the relationship between religious belief and occupational success1," European Journal of Political Economy, Elsevier, vol. 15(2), pages 163-192, June.
    Full references (including those not matched with items on IDEAS)

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