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Discrimination and workers' expectations

Author

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  • Antonio Filippin

Abstract

The paper explores the role of workers' expectations as an original explanation for the puzzling long run persistence of observed discrimination against some minorities in the labor market. A game of incomplete information is presented, showing that ex ante identical groups of workers may be characterized by unequal outcomes in equilibrium due to their different beliefs, even though discriminatory tastes and statistical discrimination by employers have disappeared. Wrong beliefs of being discriminated against are self-confirming in this circumstance, being the ultimate cause of a lower percentage of promotions which supports these wrong beliefs.

Suggested Citation

  • Antonio Filippin, 2003. "Discrimination and workers' expectations," Departmental Working Papers 2003-015, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    • Handle: RePEc:mil:wpdepa:2003-015
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    More about this item

    Keywords

    Discrimination; Workers' Expectations; Self-Confirming Beliefs.;
    All these keywords.

    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other

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