Identification, screening and stereotyping in labour market discrimination
According to social-psychological research, feelings of uncertainty in decision-making evoke two opposite responses: (i) reduction of uncertainty by information search, leading to less stereotyping of people, and hence less discrimination; (ii) social identification with an ingroup, inducing more reliance on stereotypic perceptions and prejudices, and hence more discrimination against an outgroup. We integrate both responses in a microeconomic model of hiring and pay decisions by an employer. Increasing competition in the product market makes the employer feel more uncertain about his profits, but also raises the opportunity cost of screening expenditures. This elicits substitution of ingroup identification for screening expenditures, and hence enhances discrimination.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Wallace Hendricks & Lawrence DeBrock & Roger Koenker, 2003. "Uncertainty, Hiring, and Subsequent Performance: The NFL Draft," Journal of Labor Economics, University of Chicago Press, vol. 21(4), pages 857-886, October.
- Coate, S. & Loury, G.C., 1992.
"Will Affirmative Action Policies Eliminate Negative Stereotypes?,"
3, Boston University - Department of Economics.
- Coate, Stephen & Loury, Glenn C, 1993. "Will Affirmative-Action Policies Eliminate Negative Stereotypes?," American Economic Review, American Economic Association, vol. 83(5), pages 1220-1240, December.
- Günseli Berik & Yana van der Meulen Rodgers & Joseph E. Zveglich, Jr., 2002.
"Does Trade Promote Gender Wage Equity? Evidence from East Asia,"
SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization.
2002-14, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
- Gunseli Berik & Yana van der Meulen Rodgers & Joseph E. Zveglich Jr., 2003. "Does Trade Promote Gender Wage Equity?: Evidence from East Asia," Economics Working Paper Archive wp_373, Levy Economics Institute.
- Ghazala Azmat & Maia Güell & Alan Manning, 2003.
"Gender Gaps in Unemployment Rates in OECD Countries,"
137, Barcelona Graduate School of Economics.
- Ghazala Azmat & Maia Güell & Alan Manning, 2006. "Gender Gaps in Unemployment Rates in OECD Countries," Journal of Labor Economics, University of Chicago Press, vol. 24(1), pages 1-38, January.
- Azmat, Ghazala & Güell, Maia & Manning, Alan, 2004. "Gender Gaps in Unemployment Rates in OECD Countries," CEPR Discussion Papers 4307, C.E.P.R. Discussion Papers.
- Ghazala Azmat & Maia Guell & Alan Manning, 2004. "Gender gaps in unemployment rates in OECD countries," LSE Research Online Documents on Economics 19995, London School of Economics and Political Science, LSE Library.
- Ghazala Azmat & Maia Güell & Alan Manning, 2004. "Gender Gaps in Unemployment Rates in OECD Countries," CEP Discussion Papers dp0607, Centre for Economic Performance, LSE.
- Shleifer, Andrei, 2004.
"Does Competition Destroy Ethical Behavior?,"
27867243, Harvard University Department of Economics.
- Corneo, Giacomo & Jeanne, Olivier, 2006.
"A Theory of Tolerance,"
CEPR Discussion Papers
5908, C.E.P.R. Discussion Papers.
- Cornell, Bradford & Welch, Ivo, 1996. "Culture, Information, and Screening Discrimination," Journal of Political Economy, University of Chicago Press, vol. 104(3), pages 542-571, June.
- Harry J. Holzer & David Neumark, 1998.
"What Does Affirmative Action Do?,"
NBER Working Papers
6605, National Bureau of Economic Research, Inc.
- H. J. Holzer & D. Neumark, "undated". "What Does Affirmative Action Do?," Institute for Research on Poverty Discussion Papers 1169-98, University of Wisconsin Institute for Research on Poverty.
- Haagsma, Rein, 1993. "Is statistical discrimination socially efficient?," Information Economics and Policy, Elsevier, vol. 5(1), pages 31-50, January.
- Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
- Rosén, Åsa, 1998.
"Search, Bargaining and Employer Discrimination,"
Working Paper Series
1998:13, Uppsala University, Department of Economics.
- Camerer, Colin & Weber, Martin, 1992. "Recent Developments in Modeling Preferences: Uncertainty and Ambiguity," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 325-370, October.
- Roland G. Fryer & Matthew O. Jackson, 2002.
"Categorical Cognition: A Psychological Model of Categories and Identification in Decision Making,"
- Jackson, Matthew O. & Fryer Jr., Roland G., 2002. "Categorical Cognition: A Psychological Model of Categories and Identification in Decision Making," Working Papers 1144, California Institute of Technology, Division of the Humanities and Social Sciences.
- Roland G. Fryer, Jr. & Matthew O. Jackson, 2003. "Categorical Cognition: A Psychological Model of Categories and Identification in Decision Making," NBER Working Papers 9579, National Bureau of Economic Research, Inc.
- Joseph G. Altonji & Rebecca M. Blank, "undated".
"Race and Gender in the Labor Market,"
IPR working papers
98-18, Institute for Policy Resarch at Northwestern University.
- Joseph G. Altonji & Charles R. Pierret, 2001. "Employer Learning and Statistical Discrimination," The Quarterly Journal of Economics, Oxford University Press, vol. 116(1), pages 313-350.
- George A. Akerlof & Rachel E. Kranton, 2000. "Economics and Identity," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 715-753.
- Comanor, William S, 1973. "Racial Discrimination in American Industry," Economica, London School of Economics and Political Science, vol. 40(160), pages 363-378, November.
- Patrick McGovern, 2007. "Immigration, Labour Markets and Employment Relations: Problems and Prospects," British Journal of Industrial Relations, London School of Economics, vol. 45(2), pages 217-235, 06.
- Tiedens, Larissa Z. & Linton, Susan, 2001. "Judgment under Emotional Uncertainty: The Effects of Specific Emotions and Their Associated Certainty Appraisals on Information Processing," Research Papers 1629, Stanford University, Graduate School of Business.
- Dennis J. Aigner & Glen G. Cain, 1977. "Statistical Theories of Discrimination in Labor Markets," ILR Review, Cornell University, ILR School, vol. 30(2), pages 175-187, January.
- Shepherd, William G & Levin, Sharon G, 1973. "Managerial Discrimination in Large Firms," The Review of Economics and Statistics, MIT Press, vol. 55(4), pages 412-422, November.
- Vendrik, Maarten C. M., 2003. "Dynamics of a household norm in female labour supply," Journal of Economic Dynamics and Control, Elsevier, vol. 27(5), pages 823-841, March.
- Preston, Ian & Szymanski, Stefan, 2000. "Racial Discrimination in English Football," Scottish Journal of Political Economy, Scottish Economic Society, vol. 47(4), pages 342-363, September.
- Sharon M. Oster, 1975. "Industry Differences in the Level of Discrimination Against Women," The Quarterly Journal of Economics, Oxford University Press, vol. 89(2), pages 215-229.
- Doris Weichselbaumer & Rudolf Winter-Ebmer, 2007. "The effects of competition and equal treatment laws on gender wage differentials," Economic Policy, CEPR;CES;MSH, vol. 22, pages 235-287, 04.
- Fryer Roland & Jackson Matthew O., 2008. "A Categorical Model of Cognition and Biased Decision Making," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 8(1), pages 1-44, February.
- Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162, September.
- Marjorie L. Baldwin & William G. Johnson, 1996. "The Employment Effects of Wage Discrimination against Black Men," ILR Review, Cornell University, ILR School, vol. 49(2), pages 302-316, January.
- Stefan Szymanski, 2000. "A Market Test for Discrimination in the English Professional Soccer Leagues," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 590-603, June.
When requesting a correction, please mention this item's handle: RePEc:kap:jeczfn:v:99:y:2010:i:2:p:141-171. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.