EconStor >
Forschungsinstitut zur Zukunft der Arbeit (IZA), Bonn >
IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA) >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/35746
  
Title:Equal-treatment policy in a random search model with taste discrimination PDF Logo
Authors:Kaas, Leo
Lu, Jun
Issue Date:2009
Series/Report no.:IZA discussion papers 4173
Abstract:We consider a search model of the labor market with two types of equally productive workers and two types of firms, discriminators and non-discriminators. Without policy intervention, there is wage dispersion between and within the two worker groups, but all wage differences become negligible when the taste for discrimination is small. We analyze the effect of an equal-pay policy, both in combination with affirmative action and without. When equal opportunity of hiring cannot be enforced, wage dispersion increases and wages for minority workers fall substantially relative to laissez faire. Sometimes also the wage gap between worker groups widens in response to the policy.
Subjects:Search model
wage dispersion
discrimination
equal pay policy
JEL:J41
J71
J78
Persistent Identifier of the first edition:urn:nbn:de:101:1-2009060857
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

Files in This Item:
File Description SizeFormat
601893867.pdf333.7 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/35746

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.