IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Labour market discrimination as an agency cost

  • Pierre-Guillaume Méon
  • Ariane Szafarz

This paper studies labour market discriminations as an agency problem. It sets up a principal-agent model of a firm, where the manager is a taste discriminator and has to make unobservable hiring decisions that determine the shareholder’s profits because workers differ in skills. The paper shows that performance-based contracts may moderate the manager’s propensity to discriminate, but that it is unlikely to fully eliminate discrimination.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: https://dipot.ulb.ac.be/dspace/bitstream/2013/14637/1/rou-0227.pdf
File Function: rou-0227
Download Restriction: no

Paper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers CEB with number 08-019.RS.

as
in new window

Length: 26 p.
Date of creation: Jun 2008
Date of revision:
Publication status: Published by: Université Libre de Bruxelles, Solvay Business School, Centre Emile Bernheim (CEB)
Handle: RePEc:sol:wpaper:08-019
Contact details of provider: Postal: CP114/03, 42 avenue F.D. Roosevelt, 1050 Bruxelles
Phone: +32 (0)2 650.48.64
Fax: +32 (0)2 650.41.88
Web page: http://difusion.ulb.ac.be
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Emanuele Ciriolo, 2005. "Inequity aversion and trustees' reciprocity in the trust game," DULBEA Working Papers 05-20.RS, ULB -- Universite Libre de Bruxelles.
  2. Pierre-Guillaume Méon, 2004. "Majority voting with stochastic preferences : The whims of a committee are smaller than the whims of its members," Working Papers of LaRGE Research Center 2004-07, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg.
  3. Régis Blazy & Laurent Weill, 2006. "The Impact of Legal Sanctions on Moral Hazard when Debt Contracts are Renegotiable," LSF Research Working Paper Series 06-09, Luxembourg School of Finance, University of Luxembourg.
  4. Robert Plasman & Michael Rusinek & François Rycx, 2007. "Wages and the bargaining regime under multi-level bargaining: Belgium, Denmark and Spain," ULB Institutional Repository 2013/9777, ULB -- Universite Libre de Bruxelles.
  5. Amynah Vanessa Gangji & Robert Plasman, 2007. "Microeconomic analysis of unemployment persistence in Belgium," DULBEA Working Papers 07-20.RS, ULB -- Universite Libre de Bruxelles.
  6. Delannay, Anne-France & Méon, Pierre-Guillaume, 2006. "The Impact of European Integration on the Nineties’ Wave of Mergers and Acquisitions," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 21, pages 426-446.
  7. David Neumark & Harry Holzer, 2000. "Assessing Affirmative Action," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 483-568, September.
  8. François Rycx & Thierry Lallemand & Robert Plasman, 2008. "Women and competition in elimination tournaments: evidence from professional tennis data," ULB Institutional Repository 2013/5607, ULB -- Universite Libre de Bruxelles.
  9. Beine, Michel & Bernal, Oscar & Gnabo, Jean-Yves & Lecourt, Christelle, 2009. "Intervention policy of the BoJ: A unified approach," Journal of Banking & Finance, Elsevier, vol. 33(5), pages 904-913, May.
  10. Joseph G. Altonji & Rebecca M. Blank, . "Race and Gender in the Labor Market," IPR working papers 98-18, Institute for Policy Resarch at Northwestern University.
  11. Robert Plasman & François Rycx & Ilan Tojerow, 2007. "Wage differentials in Belgium: the role of worker and employer characteristics," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 50(1), pages 11-40.
  12. O'Dorchai, Síle & Plasman, Robert & Rycx, Francois, 2007. "The Part-Time Wage Penalty in European Countries: How Large Is It for Men?," IZA Discussion Papers 2591, Institute for the Study of Labor (IZA).
  13. Michel Beine & Pierre-Yves Preumont & Ariane Szafarz, 2006. "Sector diversification during crises: a European perspective," DULBEA Working Papers 06-07.RS, ULB -- Universite Libre de Bruxelles.
  14. Michael Rusinek & François Rycx, 2008. "Rent-sharing under different bargaining regimes : Evidence from linked employer-employee data," Working Paper Research 152, National Bank of Belgium.
  15. Abdeslam Marfouk, 2008. "The African brain drain: scope and determinants," DULBEA Working Papers 08-07.RS, ULB -- Universite Libre de Bruxelles.
  16. Michael Rusinek & François Rycx, 2008. "Quelle est l'influence des négociations d'entreprise sur la structure des salaires?," DULBEA Working Papers 08-16.RS, ULB -- Universite Libre de Bruxelles.
  17. Marie Pfiffelmann, 2007. "Which optimal design for lottery linked deposit," DULBEA Working Papers 07-09.RS, ULB -- Universite Libre de Bruxelles.
  18. Pierre-Guillaume Méon & Khalid Sekkat, 2007. "Revisiting the relationship between governance and foreign direct investment," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 50(1), pages 41-61.
  19. Robert Plasman & Michael Rusinek & Ilan Tojerow, 2007. "La régionalisation de la négociation salariale en Belgique : vraie nécessité ou faux débat ?," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(2), pages 65-74.
  20. Marc Levy, 2006. "Control in Pyramidal Structures," Working Papers CEB 06-023.RS, ULB -- Universite Libre de Bruxelles.
  21. Harry J. Holzer & Keith R. Ihlanfeldt, 1998. "Customer Discrimination And Employment Outcomes For Minority Workers," The Quarterly Journal of Economics, MIT Press, vol. 113(3), pages 835-867, August.
  22. Jean Luc De Meulemeester, . "Vers une convergence des modèles? une réflexion à la lumière des expériences européennes de réforme des systèmes d'enseignement supérieur," ULB Institutional Repository 2013/14485, ULB -- Universite Libre de Bruxelles.
  23. David H. Autor & David Scarborough, 2008. "Does Job Testing Harm Minority Workers? Evidence from Retail Establishments," The Quarterly Journal of Economics, MIT Press, vol. 123(1), pages 219-277, 02.
  24. Henri Capron & Michele Cincera, 2007. "EU pre-competitive and near-the-market S&T collaborations," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 50(1), pages 135-159.
  25. Coate, Stephen & Loury, Glenn, 1993. "Antidiscrimination Enforcement and the Problem of Patronization," American Economic Review, American Economic Association, vol. 83(2), pages 92-98, May.
  26. Francine D. Blau & Lawrence M. Kahn, 2000. "Gender Differences in Pay," NBER Working Papers 7732, National Bureau of Economic Research, Inc.
  27. Iga Magda & François Rycx & Ilan Tojerow & Daphné Valsamis, 2009. "Wage differentials across sectors in Europe: an east-west comparison," Working Papers CEB 09-003.RS, ULB -- Universite Libre de Bruxelles.
  28. Didier Baudewyns & Benoît Bayenet & Robert Plasman & Catherine Van Den Steen, 2006. "Impact de la fiscalité et des dépenses communales sur la localisation intra-métropolitaine des entreprises et des ménages: Bruxelles et sa périphérie," DULBEA Working Papers 06-08.RR, ULB -- Universite Libre de Bruxelles.
  29. Aldieri, Luigi & Cincera, Michele, 2009. "Geographic and Technological R&D Spillovers within the Triad: Micro Evidence from US Patents," CEPR Discussion Papers 7113, C.E.P.R. Discussion Papers.
  30. Robert Plasman & Salimata Sissoko Ndeye, 2005. "Comparing apples with oranges: revisiting the gender wage gap in an international perspective," DULBEA Working Papers 05-12.RS, ULB -- Universite Libre de Bruxelles.
  31. Janine Leschke, 2007. "Are unemployment insurance systems in Europe adapting to new risks arising from non-standard employment?," DULBEA Working Papers 07-05.RS, ULB -- Universite Libre de Bruxelles.
  32. Michele Cincera, 2011. "Déterminants des oppositions de brevets. Une analyse microéconomique au niveau belge," Revue économique, Presses de Sciences-Po, vol. 62(1), pages 87-99.
  33. Maria Jepsen & Sile Padraigin O'Dorchai & Robert Plasman & François Rycx, 2005. "The wage penalty induced by part-time work: the case of Belgium," DULBEA Working Papers 05-17, ULB -- Universite Libre de Bruxelles.
  34. Olga Bourachnikova, 2007. "Weighting Function in the Behavioral Portfolio Theory," Working Papers CEB 07-011.RS, ULB -- Universite Libre de Bruxelles.
  35. Michele Cincera & Lydia Greunz & Jean-Luc Guyot & Olivier Lohest, 2006. "Capital humain et processus de création d'entreprise: le cas des primo-créateurs wallons," DULBEA Working Papers 06-11.RS, ULB -- Universite Libre de Bruxelles.
  36. Donna K. Ginther & Shulamit Kahn, 2004. "Women in Economics: Moving Up or Falling Off the Academic Career Ladder?," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 193-214, Summer.
  37. Jean-Luc Demeulemeester & Olivier Debande, 2008. "Quality and Variety Competition in Higher Education," Working Papers 08-10, Association Française de Cliométrie (AFC).
  38. Guido Citoni, 2007. "Are Bruxellois and Walloons more optimistic about their health?," DULBEA Working Papers 07-01.RS, ULB -- Universite Libre de Bruxelles.
  39. Caroline Gerschlager, 2008. "Foolishness and identity: Amartya Sen and Adam Smith," DULBEA Working Papers 08-03.RS, ULB -- Universite Libre de Bruxelles.
  40. Oscar Bernal Diaz, 2006. "Do interactions between political authorities and central banks influence FX interventions? Evidence from Japan," DULBEA Working Papers 06-03.RS, ULB -- Universite Libre de Bruxelles.
  41. Pierre-Guillaume Méon & Khalid Sekkat, 2006. "Institutional quality and trade: which institutions? Which trade?," DULBEA Working Papers 06-06.RS, ULB -- Universite Libre de Bruxelles.
  42. Etienne Farvaque & Norimichi Matsueda & Pierre-Guillaume Méon, 2007. "How committees reduce the volatility of policy rates," DULBEA Working Papers 07-11.RS, ULB -- Universite Libre de Bruxelles.
  43. Pierre-Guillaume Méon & Giuseppe Diana, 2008. "Monetary policy in the presence of asymmetric wage indexation," ULB Institutional Repository 2013/8354, ULB -- Universite Libre de Bruxelles.
  44. Pierre-Guillaume Méon & Friedrich Schneider & Laurent Weill, 2007. "Does taking the shadow economy into account matter to measure aggregate efficiency?," Working Papers CEB 07-027.RS, ULB -- Universite Libre de Bruxelles.
  45. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-61, September.
  46. Oscar Bernal Diaz & Jean-Yves Gnabo, 2007. "Talks, financial operations or both? Generalizing central banks' FX reaction functions," DULBEA Working Papers 07-03.RS, ULB -- Universite Libre de Bruxelles.
  47. Michel Beine & Oscar Bernal & Jean-Yves Gnabo & Christelle Lecourt, 2007. "Intervention Policy of the BoJ: a Unified Approach," LSF Research Working Paper Series 07-19, Luxembourg School of Finance, University of Luxembourg.
  48. Hanming Fang, 2001. "Social Culture and Economic Performance," American Economic Review, American Economic Association, vol. 91(4), pages 924-937, September.
  49. Michele Cincera & Verena Bikar & Henri Capron, 2006. "An integrated evaluation scheme of innovation systems from an institutional perspective," DULBEA Working Papers 06-09.RS, ULB -- Universite Libre de Bruxelles.
  50. Benoît Mahy & François Rycx & Mélanie Volral, 2008. "L'influence de la dispersion salariale sur la performance des grandes entreprises belges," ULB Institutional Repository 2013/13474, ULB -- Universite Libre de Bruxelles.
  51. Ariane Szafarz, 2007. "Hiring people-like-yourself: a representation of discrimination on the job market," Working Papers CEB 07-021.RS, ULB -- Universite Libre de Bruxelles.
  52. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
  53. Ilan Tojerow & Robert Plasman & Michael Rusinek, 2007. "La structure des salaires en Belgique," ULB Institutional Repository 2013/8825, ULB -- Universite Libre de Bruxelles.
  54. Jérôme De Henau & Leila Maron & Danièle Meulders & Sile Padraigin O'Dorchai, 2007. "Travail et maternité en Europe: conditions de travail et politiques publiques," DULBEA Working Papers 07-14.RS, ULB -- Universite Libre de Bruxelles.
  55. Didier Baudewyns & Amynah Vanessa Gangji & Robert Plasman, 2006. "Analyse exploratoire d'un programme d'allocations-loyers en Région de Bruxelles-Capitale: comparaison internationale et évaluation budgétaire et économique selon trois scénarios," DULBEA Working Papers 06-04.RR, ULB -- Universite Libre de Bruxelles.
  56. Sile Padraigin O'Dorchai, 2008. "Pay inequality in 25 European countries," DULBEA Working Papers 08-06rs, ULB -- Universite Libre de Bruxelles.
  57. Luigi Aldieri, 2008. "Technological and geographical proximity effects on knowledge spillovers: evidence from us patent citations," DULBEA Working Papers 08-18.RS, ULB -- Universite Libre de Bruxelles.
  58. Leila Maron & Danièle Meulders, 2008. "Having a child: a penalty or bonus for mother's and father's employment in Europe," DULBEA Working Papers 08-05.RS, ULB -- Universite Libre de Bruxelles.
  59. Coate, Stephen & Loury, Glenn C, 1993. "Will Affirmative-Action Policies Eliminate Negative Stereotypes?," American Economic Review, American Economic Association, vol. 83(5), pages 1220-40, December.
  60. Danièle Meulders & Sile Padraigin O'Dorchai, 2008. "Childcare in Belgium," DULBEA Working Papers N°08-08.RR, ULB -- Universite Libre de Bruxelles.
  61. Robert Plasman & Michael Rusinek & Ilan Tojerow, 2008. "Les différences régionales de productivité se reflètent-elles dans la formation des salaires?," DULBEA Working Papers 08-11.RS, ULB -- Universite Libre de Bruxelles.
  62. Kenneth J. Arrow, 1998. "What Has Economics to Say about Racial Discrimination?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 91-100, Spring.
  63. Robert Plasman & Salimata Sissoko Ndeye, 2005. "The gender wage gap in an international perspective," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 48(4), pages 419-442.
  64. Amynah Vanessa Gangji & Robert Plasman, 2007. "The Matthew effect of unemployment: how does it affect wages in Belgium," DULBEA Working Papers 07-19.RS, ULB -- Universite Libre de Bruxelles.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:sol:wpaper:08-019. 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: (Benoit Pauwels)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.