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Discrimination Theory, Labor Turnover, and Racial Unemployment Differentials

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  • Robert J. Flanagan

Abstract

This paper examines theoretically and empirically the feedback from racial wage differences to unemployment differentials among experienced workers. Although the received theory predicts that the removal of racial wage differentials will increase the relative unemployment of blacks, this conclusion rests on a demand-oriented analysis of discrimination which omits the effect of market discrimination on racial differences in quit behavior, movements between market and nonmarket activity, and related unemployment. The empirical work in the paper analyzes turnover flows and the probability of incurring unemployment, conditional on turnover by race. In clarifying the role of racial wage differentials on supply behavior, the results challenge the traditional interpretation of the effect of wage discrimination.

Suggested Citation

  • Robert J. Flanagan, 1978. "Discrimination Theory, Labor Turnover, and Racial Unemployment Differentials," Journal of Human Resources, University of Wisconsin Press, vol. 13(2), pages 187-207.
    • Handle: RePEc:uwp:jhriss:v:13:y:1978:i:2:p:187-207
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    Cited by:

    1. Peter Jackson & Edward Montgomery, 1986. "Layoffs, Discharges and Youth Unemployment," NBER Chapters, in: The Black Youth Employment Crisis, pages 115-143, National Bureau of Economic Research, Inc.
    2. Linda Leighton & Jacob Mincer, 1982. "Labor Turnover and Youth Unemployment," NBER Chapters, in: The Youth Labor Market Problem: Its Nature, Causes, and Consequences, pages 235-276, National Bureau of Economic Research, Inc.
    3. W. Kip Viscusi, 1979. "Sorting Models of Labor Mobility, Turnover, and Unemployment," NBER Working Papers 0371, National Bureau of Economic Research, Inc.
    4. Jeffrey M. Lacker, 1995. "Neighborhoods and banking," Economic Quarterly, Federal Reserve Bank of Richmond, issue Spr, pages 13-38.
    5. Karen Leppel, 2009. "Labour Force Status and Sexual Orientation," Economica, London School of Economics and Political Science, vol. 76(301), pages 197-207, February.

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