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Discrimination and Workers' Expectations

  • Filippin, Antonio

    (European University Institute)

The paper explores the role of workers' expectations as am original explanation for the puzzling long run persistence of discrimination against some minorities in the labor market. A game of incomplete information is presented, showing that ex ante identical groups of workers may be characterized by unequal outcomes in equilibrium due to their different beliefs, even though discriminatory tastes and statistical discrimination by employers have disappeared. Wrong beliefs of being discriminated against are self-confirming in this circumstance, being the ultimate cause of a lower percentage of promotions which supports these wrong beliefs.

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Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2003 with number 78.

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Date of creation: 04 Jun 2003
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Handle: RePEc:ecj:ac2003:78
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  7. Filippin, Antonio & Ichino, Andrea, 2005. "Gender wage gap in expectations and realizations," Labour Economics, Elsevier, vol. 12(1), pages 125-145, February.
  8. Filippin, Antonio, 2003. "Discrimination and Workers' Expectations: Experimental Evidence," IZA Discussion Papers 824, Institute for the Study of Labor (IZA).
  9. Moro,A. & Norman,P., 2001. "A general equilibrium model of statistical discrimination," Working papers 4, Wisconsin Madison - Social Systems.
  10. Drew Fudenberg & David K. Levine, 1993. "Self-Confirming Equilibrium," Levine's Working Paper Archive 2147, David K. Levine.
  11. Corns, Allan & Schotter, Andrew, 1996. "Can Affirmative Action be Cost-Effective? An Experimental Examination of Price-Preference Auctions," Working Papers 96-02, C.V. Starr Center for Applied Economics, New York University.
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  14. Dennis J. Aigner & Glen G. Cain, 1977. "Statistical theories of discrimination in labor markets," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 30(2), pages 175-187, January.
  15. O'Keeffe, Mary & Viscusi, W Kip & Zeckhauser, Richard J, 1984. "Economic Contests: Comparative Reward Schemes," Journal of Labor Economics, University of Chicago Press, vol. 2(1), pages 27-56, January.
  16. Richard Breen & Cecilia Garcia-Penalosa, 2002. "Bayesian Learning and Gender Segregation," Journal of Labor Economics, University of Chicago Press, vol. 20(4), pages 899-922, October.
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