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An Equilibrium Search Model with Co-Worker Discrimination

  • Masaru Sasaki

    (Georgetown University)

This paper analyzes the effect of co-worker discrimination on wage and unemployment differentials between males and females using a search model. In the presence of asymmetric co- worker discrimination, no female-dominated firm emerges in the labor market. An increase in female participation drives up the wage offer to female workers and raises female employment Moreover, an increase in the degree of discrimination by males results in gains to them in terms of higher wages and lower unemployment but results in losses to females in terms of lower wages and higher unemployment. The benefit to males provides an explanation for the persistence of discrimination.

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Paper provided by EconWPA in its series Labor and Demography with number 9802001.

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Length: 47 pages
Date of creation: 11 Feb 1998
Date of revision:
Handle: RePEc:wpa:wuwpla:9802001
Note: Type of Document - WordPerfect; prepared on IBM PC; to print on HP; pages: 47 ; figures: included. I thank James Albrecht, Mitsuhiro Kaneda, Ivan Pastine, Susan Vroman, and the participants in seminars at Georgetown and the Kansai Labor Economics Group for helpful comments and discussion.
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  1. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
  2. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-43, May.
  3. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
  4. Matthew S. Goldberg, 1982. "Discrimination, Nepotism, and Long-Run Wage Differentials," The Quarterly Journal of Economics, Oxford University Press, vol. 97(2), pages 307-319.
  5. Leslie S. Stratton, 1993. "Racial Differences in Men's Unemployment," ILR Review, Cornell University, ILR School, vol. 46(3), pages 451-463, April.
  6. George J. Borjas & Stephen G. Bronars, 1988. "Consumer Discrimination and Self-Employment," NBER Working Papers 2627, National Bureau of Economic Research, Inc.
  7. James F. Ragan & Carol Horton Tremblay, 1988. "Testing for Employee Discrimination by Race and Sex," Journal of Human Resources, University of Wisconsin Press, vol. 23(1), pages 123-137.
  8. Black, Dan A, 1995. "Discrimination in an Equilibrium Search Model," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 309-33, April.
  9. Marjorie L. Baldwin & William G. Johnson, 1996. "The Employment Effects of Wage Discrimination against Black Men," ILR Review, Cornell University, ILR School, vol. 49(2), pages 302-316, January.
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