Search, Bargaining and Employer Discrimination

Åsa Rosén

No 1998:13, Working Paper Series from Uppsala University, Department of Economics

Abstract: This paper analyses Becker´s (1971) theory of employer discrimination within a search and wage-bargaining setting. Discriminatory firms pay workers who are discriminated against less, and apply stricter hiring-criteria to these workers. It is shown that the highest profits are realized by firms with a positive discrimination coefficient. Moreover, once ownership and control are separated, both highest profits and highest utility may be realized by firms with a positive discrimination coefficient. Thus, market forces, like entry and/or takeovers do not ensure that wage differentials due to employer discrimination will disappear.

Keywords: Search; discrimination (search for similar items in EconPapers)
JEL-codes: J71 (search for similar items in EconPapers)
Pages: 30 pages
Date: 1998-06-04
New Economics Papers: this item is included in nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Forthcoming in Journal of Labor Economics, 2003.

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Related works:
Journal Article: Search, Bargaining, and Employer Discrimination (2003)
Working Paper: Search, Bargaining and Employer Discrimination (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:uunewp:1998_013

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