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Discrimination and Worker Evaluation / Costas Cavounidis, Kevin Lang.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Cavounidis, Costas.
Contributor:
National Bureau of Economic Research.
Lang, Kevin.
Series:
Working Paper Series (National Bureau of Economic Research) no. w21612.
NBER working paper series no. w21612
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2015.
Summary:
We develop a model of self-sustaining discrimination in wages, coupled with higher unemployment and shorter employment duration among blacks. While white workers are hired and retained indefinitely without monitoring, black workers are monitored and fired if a negative signal is received. The fired workers, who return to the pool of job-seekers, lower the average productivity of black job-seekers, perpetuating the cycle of lower wages and discriminatory monitoring. Under suitable parameter values the model has two steady states, one corresponding to each population group. Discrimination can persist even if the productivity of blacks exceeds that of whites.
Notes:
Print version record
October 2015.

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