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A tradable employment quota

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  • Akyol, Metin
  • Neugart, Michael
  • Pichler, Stefan

Abstract

Discrimination of women in the labor market requires appropriate policy interventions. Affirmative action policies typically advocate the introduction of an employment quota uniformly applied to all firms. In a heterogeneous labor market such a policy may yield avoidable welfare losses. We propose a tradable employment quota showing its effects on wages, employment, and welfare in a labor market with search frictions and taste discrimination. A tradable employment quota appears to be a viable alternative yielding superior labor market outcomes.

Suggested Citation

  • Akyol, Metin & Neugart, Michael & Pichler, Stefan, 2015. "A tradable employment quota," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112977, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc15:112977
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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