Discrimination in the Equilibrium Search Model with Wage-Tenure Contracts

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...

وصف كامل

محفوظ في:
التفاصيل البيبلوغرافية
المؤلفون الرئيسيون: Fang, Zheng, Sakellariou, Christos
مؤلفون آخرون: School of Humanities and Social Sciences
التنسيق: مقال
اللغة:English
منشور في: 2016
الموضوعات:
الوصول للمادة أونلاين:https://hdl.handle.net/10356/82144
http://hdl.handle.net/10220/41165
http://aeconf.com/nov2013.htm
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المؤسسة: Nanyang Technological University
اللغة: English
الوصف
الملخص: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 than non-discriminating firms; offers to minority workers by non-discriminating firms are consistently superior to those by discriminating firms, and at the same wage level, majority workers almost always experience a faster wage increase than the minority workers.