An Equilibrium Search-Matching Model of Discrimination

Åsa Rosén

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: A model in which firms have incomplete information about workers at the hiring stage is shown to entail discrimination as the unique stable equilibrium outcome, even if no agents have a taste for discrimination. Discriminated groups (e.g., blacks, women) earn lower wages, endure longer unemployment spells, and must satisfy stricter requirements in order to obtain work.

Date: 1992-09
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Journal Article: An equilibrium search-matching model of discrimination (1997)
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