Discrimination and Workers' Expectations

Antonio Filippin

No 78, Royal Economic Society Annual Conference 2003 from Royal Economic Society

Abstract: The paper explores the role of workers' expectations as am original explanation for the puzzling long run persistence of discrimination against some minorities in the labor market. A game of incomplete information is presented, showing that ex ante identical groups of workers may be characterized by unequal outcomes in equilibrium due to their different beliefs, even though discriminatory tastes and statistical discrimination by employers have disappeared. Wrong beliefs of being discriminated against are self-confirming in this circumstance, being the ultimate cause of a lower percentage of promotions which supports these wrong beliefs.

Keywords: discrimination; workers' expectations; self-confirming beliefs (search for similar items in EconPapers)
JEL-codes: C79 D84 J15 J24 J71 (search for similar items in EconPapers)
Date: 2003-06-04
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Citations: View citations in EconPapers (4)

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