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Search, bargaining and employer discrimination
Uppsala University, Humanistisk-samhällsvetenskapliga vetenskapsområdet, Faculty of Social Sciences, Department of Economics.
1998 (English)Report (Other academic)
Abstract [en]

This paper analyses Becker´s (1971) theory of employer discrimination within a search and wage-bargaining setting. Discriminatory firms pay workers who are discriminated against less, and apply stricter hiring-criteria to these workers. It is shown that the highest profits are realized by firms with a positive discrimination coefficient. Moreover, once ownership and control are separated, both highest profits and highest utility may be realized by firms with a positive discrimination coefficient. Thus, market forces, like entry and/or takeovers do not ensure that wage differentials due to employer discrimination will disappear.

Place, publisher, year, edition, pages
Uppsala: Nationalekonomiska institutionen , 1998. , p. 30
Series
Working paper, ISSN 0284-2904
Keyword [en]
Economics
Keyword [sv]
Nationalekonomi
National Category
Economics
Identifiers
URN: urn:nbn:se:uu:diva-2420ISBN: 99-2659842-0 OAI: oai:DiVA.org:uu-2420DiVA, id: diva2:128681
Available from: 1998-01-01 Created: 1998-01-01

Open Access in DiVA

fulltext(236 kB)180 downloads
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62561b266e7e9f2bb74b8f89fb0d0b6805594cc6261f1e2503996eea3e8d902b205e9b13
Type fulltextMimetype application/pdf

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CiteExportLink to record
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