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Discrimination and workers' expectations: experimental evidence

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  • Antonio Filippin

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Abstract

This paper is an experimental analysis of the role played by workers' expectations in explaining the puzzling long-run persistence of observed discrimination against certain minorities in the labor market. The experiment provides some evidence supporting the theoretical prediction that unequal outcomes may emerge due to disadvantaged workers' wrong expectations of being discriminated against. However, this effect is not long-lasting, since players learn the true state of nature in later stages of the experiment, failing to generate a Self-Confirming Equilibrium driven by wrong beliefs. The strategy method provides additional evidence that expectations matter.

Suggested Citation

  • Antonio Filippin, 2003. "Discrimination and workers' expectations: experimental evidence," Departmental Working Papers 2003-16, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  • Handle: RePEc:mil:wpdepa:2003-16
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    File URL: http://wp.demm.unimi.it/files/wp/2003/DEMM-2003_016wp.pdf
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    References listed on IDEAS

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    Cited by:

    1. Antonio Filippin, 2003. "Discrimination and workers' expectations," Departmental Working Papers 2003-15, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    2. Filippin, Antonio & Ichino, Andrea, 2005. "Gender wage gap in expectations and realizations," Labour Economics, Elsevier, vol. 12(1), pages 125-145, February.

    More about this item

    Keywords

    Experiments; Discrimination; Workers' Expectations.;

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations

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