Discrimination in the Equilibrium Search Model with Wage-Tenure Contracts

• Main Authors: Fang, Zheng, Sakellariou, Christos
• Other Authors: School of Humanities and Social Sciences
• Format: Article
• Language: English
• Published: 2016
• Subjects: Discrimination; Search model
• Online Access: https://hdl.handle.net/10356/82144; http://hdl.handle.net/10220/41165; http://aeconf.com/nov2013.htm
• Institution: Nanyang Technological University

This paper extends Burdett and Coles (2003)’s search model to two types of workers and firms and derives the equilibrium earnings distributions for both types of workers. It is proven that minority workers have a higher unemployment rate than majority workers; discriminating firms make lower profit...