Arbeitspapier

Equal-treatment policy in a random search model with taste discrimination

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.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 4173

Klassifikation
Wirtschaft
Labor Contracts
Labor Discrimination
Labor Discrimination: Public Policy
Thema
Search model
wage dispersion
discrimination
equal pay policy
Arbeitsuche
Ethnische Gruppe
Arbeitsnachfrage
Arbeitsmarktdiskriminierung
Lohndifferenzierung
Gleichbehandlungsrecht
Theorie

Ereignis
Geistige Schöpfung
(wer)
Kaas, Leo
Lu, Jun
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2009

Handle
URN
urn:nbn:de:101:1-2009060857
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Kaas, Leo
  • Lu, Jun
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2009

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