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Discrimination, Regulations and the Optimal Hiring Process

Author

Listed:
  • Richard Ishac

    (Queen's University)

Abstract

"This article provides a theoretical framework for comparing two different hiring practices: an unpaid competitive internship that is followed by a potential job offer versus a standard series of interviews. After fully characterizing the optimal hiring process, I show that high-ability minorities can be harmed by labour regulations that cause employers to shift towards a hiring process in which they are more likely to discriminate. Furthermore, preventing employers from giving truthful references is shown to exacerbate the obstacles to employment of a community traditionally facing discrimination. "

Suggested Citation

  • Richard Ishac, 2024. "Discrimination, Regulations and the Optimal Hiring Process," Review of Economic Analysis, Digital Initiatives at the University of Waterloo Library, vol. 16(2), pages 221-241, August.
    • Handle: RePEc:ren:journl:v:16:y:2024:i:2:p:221-241
    DOI: https://doi.org/10.15353/rea.v16i2.5189
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    More about this item

    Keywords

    Discrimination; Regulations; Organizational Structure;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • D2 - Microeconomics - - Production and Organizations

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