Labour Market Performance Effects of Discrimination and Loss of Skill

Birthe Larsen and Gisela Waisman
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Gisela Waisman: Stockholm University

No 05-2012, Working Papers from Copenhagen Business School, Department of Economics

Abstract: We examine the impact of discrimination on labour market performance when workers are subject to a risk of losing skills during the experience of unemployment. Within a search and matching model, we show that all natives and immigrants are affected by discrimination. Discrimination in one sector has positive spillovers, inducing employment increases in the other sector.

Discrimination may induce immigrants to train more or less than natives, depending on the sector where it is present.

Welfare tends to be most negatively affected by discrimination among high- productivity workers.

Keywords: discrimination; unemployment; search and matching; wages (search for similar items in EconPapers)
JEL-codes: J15 J31 J61 J64 J71 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2012-10-15
New Economics Papers: this item is included in nep-dge and nep-mig
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: LABOR MARKET PERFORMANCE EFFECTS OF DISCRIMINATION AND LOSS OF SKILL (2016)
Working Paper: Labour Market Performance Effects of Discrimination and Loss of Skill (2015)
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