Discrimination in the Equilibrium Search Model with Wage-Tenure Contracts

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...

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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
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Institution: Nanyang Technological University
Language: English
id sg-ntu-dr.10356-82144
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spelling sg-ntu-dr.10356-821442019-12-06T14:47:33Z Discrimination in the Equilibrium Search Model with Wage-Tenure Contracts Fang, Zheng Sakellariou, Christos School of Humanities and Social Sciences Discrimination Search model 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. Published version 2016-08-18T08:43:17Z 2019-12-06T14:47:32Z 2016-08-18T08:43:17Z 2019-12-06T14:47:32Z 2013 Journal Article Fang, Z., & Sakellariou, C. (2013). Discrimination in the Equilibrium Search Model with Wage-Tenure Contracts. Annals of Economics and Finance, 14(2A), 453-482. 1529-7373 https://hdl.handle.net/10356/82144 http://hdl.handle.net/10220/41165 http://aeconf.com/nov2013.htm en Annals of Economics and Finance © 2013 The Authors (published by Peking University Press). This paper was published in Annals of Economics and Finance and is made available as an electronic reprint (preprint) with permission of Peking University Press. The published version is available at: [http://aeconf.com/nov2013.htm]. One print or electronic copy may be made for personal use only. Systematic or multiple reproduction, distribution to multiple locations via electronic or other means, duplication of any material in this paper for a fee or for commercial purposes, or modification of the content of the paper is prohibited and is subject to penalties under law. 30 p. application/pdf
institution Nanyang Technological University
building NTU Library
country Singapore
collection DR-NTU
language English
topic Discrimination
Search model
spellingShingle Discrimination
Search model
Fang, Zheng
Sakellariou, Christos
Discrimination in the Equilibrium Search Model with Wage-Tenure Contracts
description 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.
author2 School of Humanities and Social Sciences
author_facet School of Humanities and Social Sciences
Fang, Zheng
Sakellariou, Christos
format Article
author Fang, Zheng
Sakellariou, Christos
author_sort Fang, Zheng
title Discrimination in the Equilibrium Search Model with Wage-Tenure Contracts
title_short Discrimination in the Equilibrium Search Model with Wage-Tenure Contracts
title_full Discrimination in the Equilibrium Search Model with Wage-Tenure Contracts
title_fullStr Discrimination in the Equilibrium Search Model with Wage-Tenure Contracts
title_full_unstemmed Discrimination in the Equilibrium Search Model with Wage-Tenure Contracts
title_sort discrimination in the equilibrium search model with wage-tenure contracts
publishDate 2016
url https://hdl.handle.net/10356/82144
http://hdl.handle.net/10220/41165
http://aeconf.com/nov2013.htm
_version_ 1681049453470941184

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