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Who is hurt by discrimination?

Author

Listed:
  • Larsen, Birthe

    (Department of Economics, Copenhagen Business School)

  • Waisman, Gisela

    (Department of Economics, Copenhagen Business School)

Abstract

The eects of discrimination of immigrants on the labour market are studied within a search and wage-bargaining setting including a risk of losing skills during the experience of unemployment. The negative eects of discrimination in the form of higher unemployment and lower wages spread to all workers, immigrants and natives, in all sectors of the economy. The eect is stronger for immigrants, but natives suer as well. An increase in the share of immigrants in the economy exacerbates the problem of discrimination

Suggested Citation

  • Larsen, Birthe & Waisman, Gisela, 2007. "Who is hurt by discrimination?," Working Papers 12-2007, Copenhagen Business School, Department of Economics.
  • Handle: RePEc:hhs:cbsnow:2007_012
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    File URL: http://openarchive.cbs.dk/cbsweb/handle/10398/7634
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    References listed on IDEAS

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    1. Luca Flabbi, 2010. "Gender Discrimination Estimation In A Search Model With Matching And Bargaining," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(3), pages 745-783, August.
    2. Larsen, Birthe, 2001. "Minimum wages, technological progress and loss of skill," European Economic Review, Elsevier, vol. 45(8), pages 1521-1544, August.
    3. Rosen, Asa, 1997. "An equilibrium search-matching model of discrimination," European Economic Review, Elsevier, pages 1589-1613.
    4. Riach, Peter A & Rich, Judith, 1991. "Testing for Racial Discrimination in the Labour Market," Cambridge Journal of Economics, Oxford University Press, vol. 15(3), pages 239-256, September.
    5. Carlsson, Magnus & Rooth, Dan-Olof, 2007. "Evidence of ethnic discrimination in the Swedish labor market using experimental data," Labour Economics, Elsevier, pages 716-729.
    6. Borjas, George J & Bronars, Stephen G, 1989. "Consumer Discrimination and Self-employment," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 581-605, June.
    7. Helena Skyt Nielsen & Michael Rosholm & Nina Smith & Leif Husted, 2004. "Qualifications, discrimination, or assimilation? An extended framework for analysing immigrant wage gaps," Empirical Economics, Springer, pages 855-883.
    8. Black, Dan A, 1995. "Discrimination in an Equilibrium Search Model," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 309-333, April.
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    Cited by:

    1. Waisman, Gisela & Larsen, Birthe, 2007. "Do attitudes towards immigrants matter?," Working Papers 11-2007, Copenhagen Business School, Department of Economics.

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    Keywords

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    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

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