arXiv Open Access 2020

A Search Model of Statistical Discrimination

Jiadong Gu Peter Norman

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Abstrak

We offer a search-theoretic model of statistical discrimination, in which firms treat identical groups unequally based on their occupational choices. The model admits symmetric equilibria in which the group characteristic is ignored, but also asymmetric equilibria in which a group is statistically discriminated against, even when symmetric equilibria are unique. Moreover, a robust possibility is that symmetric equilibria become unstable when the group characteristic is introduced. Unlike most previous literature, our model can justify affirmative action since it eliminates asymmetric equilibria without distorting incentives.

Topik & Kata Kunci

econ.TH

Penulis (2)

Jiadong Gu

Peter Norman

Format Sitasi

APA MLA BibTeX

Gu, J., Norman, P. (2020). A Search Model of Statistical Discrimination. https://arxiv.org/abs/2004.06645

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Informasi Jurnal

Tahun Terbit: 2020
Bahasa: en
Sumber Database: arXiv
Akses: Open Access ✓