A tradable employment quota

Metin Akyol (), Michael Neugart and Stefan Pichler ()

Labour Economics, 2015, vol. 36, issue C, 48-63

Abstract: Discrimination of women in the labor market requires appropriate policy interventions. Affirmative action policies typically advocate the introduction of an employment quota uniformly applied to all firms. In a heterogeneous labor market such a policy may yield avoidable welfare losses. We propose a tradable employment quota showing its effects on wages, employment, and welfare in a labor market with search frictions and taste discrimination. A tradable employment quota appears to be a viable alternative yielding superior labor market outcomes.

Keywords: Tradable employment quota; Affirmative action policies; Taste discrimination; Labor market; Search and matching; Agent-based model (search for similar items in EconPapers)
JEL-codes: C63 J71 J78 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:36:y:2015:i:c:p:48-63

DOI: 10.1016/j.labeco.2015.08.001

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