IDEAS home Printed from https://ideas.repec.org/p/duk/dukeec/00-18.html
   My bibliography  Save this paper

Search Discrimination, Human Capital Accumulation, and Intergenerational Mobility

Author

Listed:
  • Arcidiacono, Peter

Abstract

Unequal outcomes for blacks and whites include earnings inequality, which increases with age, and differences in unemployment rates. I develop a matching model with search discrimination and human capital accumulation. Multiple equilibria exist, one with low unemployment rates and steep earnings profiles and one with high unemployment rates and flat earnings profiles. Hence, two groups of workers that differ on an observable, exogenous characteristic (say, race) can be in two different equilibria. In the high unemployment equilibrium, less vacancies are posted leading to the concept of search discrimination. A quota system can remove the discriminatory outcomes. However, if parents' investment decisions affect the investment decisions of their children, policies which remove the search discrimination through a quota system still lead to unequal results in the short run. In this case, whites may want to subsidize black investment as black investment improves the labor market outcomes for whites.

Suggested Citation

  • Arcidiacono, Peter, 2000. "Search Discrimination, Human Capital Accumulation, and Intergenerational Mobility," Working Papers 00-18, Duke University, Department of Economics.
  • Handle: RePEc:duk:dukeec:00-18
    as

    Download full text from publisher

    File URL: http://www.econ.duke.edu/Papers/Abstracts00/abstract.00.18.html
    File Function: main text
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Moro, Andrea & Norman, Peter, 2003. "Affirmative action in a competitive economy," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 567-594, March.
    2. Larry Samuelson & George J. Mailath & Avner Shaked, 2000. "Endogenous Inequality in Integrated Labor Markets with Two-Sided Search," American Economic Review, American Economic Association, vol. 90(1), pages 46-72, March.
    3. Kenneth Arrow, 1971. "The Theory of Discrimination," Working Papers 403, Princeton University, Department of Economics, Industrial Relations Section..
    4. Lundberg, Shelly J & Startz, Richard, 1983. "Private Discrimination and Social Intervention in Competitive Labor Markets," American Economic Review, American Economic Association, vol. 73(3), pages 340-347, June.
    5. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    6. 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.
    7. Christopher A. Pissarides, 1992. "Loss of Skill During Unemployment and the Persistence of Employment Shocks," The Quarterly Journal of Economics, Oxford University Press, vol. 107(4), pages 1371-1391.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arcidiacono, Peter, 2003. "The dynamic implications of search discrimination," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1681-1706, August.
    2. Sáez-Martı´, Maria & Zenou, Yves, 2012. "Cultural transmission and discrimination," Journal of Urban Economics, Elsevier, vol. 72(2), pages 137-146.
    3. Lommerud, Kjell Erik & Vagstad, Steinar, 2000. "Mommy Tracks and Public Policy: On Self-Fulfilling Prophecies and Gender Gaps in Promotion," CEPR Discussion Papers 2378, C.E.P.R. Discussion Papers.
    4. Bart Hobijn & Carlos A. Medina-Durango, 2000. "Is Discrimination Due to a Coordination Failure?," Econometric Society World Congress 2000 Contributed Papers 1758, Econometric Society.
    5. Moro, Andrea & Norman, Peter, 2003. "Affirmative action in a competitive economy," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 567-594, March.
    6. Moro, Andrea & Norman, Peter, 2004. "A general equilibrium model of statistical discrimination," Journal of Economic Theory, Elsevier, vol. 114(1), pages 1-30, January.
    7. Shubham Chaudhuri & Rajiv Sethi, 2003. "Statistical Discrimination with Neighborhood Effects: Can Integration Eliminate Negative Stereotypes?," Game Theory and Information 0312001, University Library of Munich, Germany.
    8. Fang, Hanming & Norman, Peter, 2001. "Government-Mandated Discriminatory Policies," Working Paper Series 562, Research Institute of Industrial Economics.
    9. Harbaugh, Rick & To, Ted, 2014. "Opportunistic discrimination," European Economic Review, Elsevier, vol. 66(C), pages 192-204.
    10. Lommerud, Kjell Erik & Straume, Odd Rune & Vagstad, Steinar, 2015. "Mommy tracks and public policy: On self-fulfilling prophecies and gender gaps in hiring and promotion," Journal of Economic Behavior & Organization, Elsevier, vol. 116(C), pages 540-554.
    11. Rajesh Ramachandran & Christopher Rauh, 2018. "Discrimination without taste: how discrimination can spillover and persist," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 9(3), pages 249-274, August.
    12. Leo Kaas, 2009. "Does Equal Pay Legislation Reduce Labour Market Inequality?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(1), pages 51-71, March.
    13. David Bjerk, 2004. "The Differing Nature of Black-White Wage Inequality Across Employment Sectors," Department of Economics Working Papers 2004-09, McMaster University.
    14. Shelly Lundberg & Richard Startz, 1998. "Race, Information, and Segregation," Discussion Papers in Economics at the University of Washington 0047, Department of Economics at the University of Washington.
    15. Havet, Nathalie, 2004. "Écarts salariaux et disparités professionnelles entre sexes : développements théoriques et validité empirique," L'Actualité Economique, Société Canadienne de Science Economique, vol. 80(1), pages 5-39, Mars.
    16. Kevin Lang & Ariella Kahn-Lang Spitzer, 2020. "Race Discrimination: An Economic Perspective," Journal of Economic Perspectives, American Economic Association, vol. 34(2), pages 68-89, Spring.
    17. Klumpp, Tilman & Su, Xuejuan, 2013. "Second-order statistical discrimination," Journal of Public Economics, Elsevier, vol. 97(C), pages 108-116.
    18. Luojia Hu & Christopher Taber, 2011. "Displacement, Asymmetric Information, and HeterogeneousHuman Capital," Journal of Labor Economics, University of Chicago Press, vol. 29(1), pages 113-152, January.
    19. David Bjerk, 2007. "Racial Profiling, Statistical Discrimination, and the Effect of a Colorblind Policy on the Crime Rate," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 9(3), pages 521-545, June.
    20. Thierry Verdier & Yves Zenou, 2004. "Racial Beliefs, Location, And The Causes Of Crime," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(3), pages 731-760, August.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:duk:dukeec:00-18. 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: . General contact details of provider: http://econ.duke.edu/ .

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Department of Economics Webmaster (email available below). General contact details of provider: http://econ.duke.edu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.