Discrimination and Skill Differences in an Equilibrium Search Model

Audra Bowlus () and Zvi Eckstein ()

International Economic Review, 2002, vol. 43, issue 4, 1309-1345

Abstract: We analyze an equilibrium search model with three sources for wage and unemployment differentials among workers with the same (observed) human capital but different appearance (race): unobserved productivity, search intensities, and discrimination due to an appearance-based employer disutility factor. We show that the structural parameters are identified using labor market survey data. Estimation results for a black and white high school graduate sample imply: black productivity is 3.3% lower than white productivity; the employer's disutility factor is 31% of the white's productivity level; and 56% of firms have a disutility factor toward blacks. Copyright 2002 by the Economics Department of the University of Pennsylvania and Osaka University Institute of Social and Economic Research Association

Date: 2002
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Related works:
Working Paper: Discrimination and Skill Differences in an Equilibrium Search Model (1998)
Working Paper: Discrimination and Skill Differences in an Equilibrium Search Model (1998)
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