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Discrimination and Skill Differences in an Equilibrium Search Model

Author

Listed:
  • Bowlus, A.J.
  • Eckstein, Z.

Abstract

In this paper we analyze an equilibrium search model with three sources for age and unemployment differentials among workers with the same (observed) human capital, but different appearance (race): unobserved productivity (skill), search intensities and discrimination (Becker 1957) due to an appearance-based employer disutility factor. Because these sources affect the earnings distributions differently, empirical identification of these potential sources for the explanation of wage and unemployment differentials is possible.

Suggested Citation

  • Bowlus, A.J. & Eckstein, Z., 1998. "Discrimination and Skill Differences in an Equilibrium Search Model," Papers 04-98, Tel Aviv.
    • Handle: RePEc:fth:teavfo:04-98
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    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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