Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/208573 
Year of Publication: 
2012
Series/Report no.: 
Working paper No. 5-2012
Publisher: 
Copenhagen Business School (CBS), Department of Economics, Frederiksberg
Abstract: 
We examine the impact of discrimination on labour market performance when workers are subject to a risk of losing skills during the experience of unemployment. Within a search and matching model, we show that all natives and immigrants are affected by discrimination. Discrimination in one sector has positive spillovers, inducing employment increases in the other sector. Discrimination may induce immigrants to train more or less than natives, depending on the sector where it is present. Welfare tends to be most negatively affected by discrimination among high- productivity workers.
Subjects: 
discrimination
unemployment
search and matching
wages
JEL: 
J15
J31
J61
J64
J71
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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