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Screening Discrimination in a Broader Context

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  • James Fain

Abstract

I employ simulations to investigate the impact of screening discrimination, which addresses discrimination in hiring. I extend a well‐known model of screening discrimination by including minority firms, wages, worker preferences and competition among the firms for workers. The Gale–Shapley algorithm is used to find a stable matching of heterogeneous workers to heterogeneous firms. Screening discrimination gives majority applicants an advantage in the hiring process, but this advantage is reduced by the presence of minority firms. In this broader context, screening discrimination produces segregated firms but has little impact on median wages or employment probabilities. Copyright © 2016 John Wiley & Sons, Ltd.

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  • James Fain, 2016. "Screening Discrimination in a Broader Context," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 23(4), pages 276-294, October.
    • Handle: RePEc:wly:isacfm:v:23:y:2016:i:4:p:276-294
    DOI: 10.1002/isaf.1388
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    References listed on IDEAS

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