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An Equilibrium Search-Matching Model of Discrimination

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  • A Rosen

Abstract

A model in which firms have incomplete information about workers at the hiring stage is shown to entail discrimination as the unique stable equilibrium outcome, even if no agents have a taste for discrimination. Discriminated groups (e.g., blacks, women) earn lower wages, endure longer unemployment spells, and must satisfy stricter requirements in order to obtain work.

Suggested Citation

  • A Rosen, 1992. "An Equilibrium Search-Matching Model of Discrimination," CEP Discussion Papers dp0097, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp0097
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    References listed on IDEAS

    as
    1. Kevin Lang, 1986. "A Language Theory of Discrimination," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(2), pages 363-382.
    2. repec:bla:econom:v:58:y:1991:i:229:p:93-106 is not listed on IDEAS
    3. Paul Milgrom & Sharon Oster, 1987. "Job Discrimination, Market Forces, and the Invisibility Hypothesis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(3), pages 453-476.
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