An Equilibrium Search-Matching Model of Discrimination
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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|Date of creation:||Sep 1992|
|Date of revision:|
|Contact details of provider:|| Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP|
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