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An Equilibrium Search Model with Co-Worker Discrimination

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  • Masaru Sasaki

    (Georgetown University)

Abstract

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.

Suggested Citation

  • Masaru Sasaki, 1998. "An Equilibrium Search Model with Co-Worker Discrimination," Labor and Demography 9802001, University Library of Munich, Germany.
  • 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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    References listed on IDEAS

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    1. 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.
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    5. 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.
    6. 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.
    7. Leslie S. Stratton, 1993. "Racial Differences in Men's Unemployment," ILR Review, Cornell University, ILR School, vol. 46(3), pages 451-463, April.
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    Cited by:

    1. Nathalie Havet & Catherine Sofer, 2008. "Why Do Women's Wages Increase So Slowly Throughout Their Career? A Dynamic Model of Statistical Discrimination," LABOUR, CEIS, vol. 22(2), pages 291-314, June.
    2. Combes, Pierre-Philippe & Decreuse, Bruno & Schmutz, Benoît & Trannoy, Alain, 2018. "Neighbor discrimination theory and evidence from the French rental market," Journal of Urban Economics, Elsevier, vol. 104(C), pages 104-123.
    3. 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.
    4. Kawaguchi, Daiji, 2007. "A market test for sex discrimination: Evidence from Japanese firm-level panel data," International Journal of Industrial Organization, Elsevier, vol. 25(3), pages 441-460, June.
    5. Ian Burn, 2020. "The Relationship between Prejudice and Wage Penalties for Gay Men in the United States," ILR Review, Cornell University, ILR School, vol. 73(3), pages 650-675, May.
    6. Kunze, Astrid & Troske, Kenneth R., 2012. "Life-cycle patterns in male/female differences in job search," Labour Economics, Elsevier, vol. 19(2), pages 176-185.
    7. Keita, Sekou & Valette, Jérôme, 2020. "Arbeitsmarktdiskriminierung: Zugewanderte, denen man weniger vertraut, bleiben länger arbeitslos (Labour market discrimination: Immigrants who receive less trust remain unemployed longer)," IAB-Kurzbericht 202010, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    8. Giovanni Sulis, 2012. "Gender wage differentials in Italy: a structural estimation approach," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(1), pages 53-87, January.
    9. Havet, Nathalie, 2004. "Écarts salariaux et disparités professionnelles entre sexes : développements théoriques et validité empirique," L'Actualité Economique, Société Canadienne de Science Economique, vol. 80(1), pages 5-39, Mars.
    10. Janssen, Simon & Tuor Sartore, Simone N. & Backes-Gellner, Uschi, 2014. "Social Attitudes on Gender Equality and Firms' Discriminatory Pay-Setting," IZA Discussion Papers 7959, Institute of Labor Economics (IZA).
    11. Kevin Lang & Jee-Yeon K. Lehmann, 2012. "Racial Discrimination in the Labor Market: Theory and Empirics," Journal of Economic Literature, American Economic Association, vol. 50(4), pages 959-1006, December.
    12. Chen, Yiu Por (Vincent) & Zhang, Yuan, 2018. "A decomposition method on employment and wage discrimination and its application in urban China (2002–2013)," World Development, Elsevier, vol. 110(C), pages 1-12.
    13. Esther Hauk & Hannes Mueller, 2015. "Cultural Leaders and the Clash of Civilizations," Journal of Conflict Resolution, Peace Science Society (International), vol. 59(3), pages 367-400, April.
    14. Jonathan Lain, 2016. "Discrimination in a Search-Match Model with Self-Employment," CSAE Working Paper Series 2016-02, Centre for the Study of African Economies, University of Oxford.
    15. Asa Rosen, 2003. "Search, Bargaining, and Employer Discrimination," Journal of Labor Economics, University of Chicago Press, vol. 21(4), pages 807-830, October.
    16. Etoundi Atenga, Eric Martial & Chameni Nembua, Célestin & Meva Avoulou, Henri Joel, 2013. "Ecarts de salaire entre hommes et femmes au Cameroun : Discrimination ou Capital humain ? Une approche par sous groupes [Gender wage gap : Discrimination or Human Capital? A subgroup approach]," MPRA Paper 64761, University Library of Munich, Germany, revised Aug 2014.
    17. Jonathan Lain, 2019. "Discrimination in a search and matching model with self-employment," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 9(1), pages 1-35, December.

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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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