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Title: Discrimination and Skill Differences in an Equilibrium Search Model
Resulting in 1 citation.
1. Bowlus, Audra Jann
Eckstein, Zvi
Discrimination and Skill Differences in an Equilibrium Search Model
Working Paper 04/98, Tel Aviv, Israel, Foerder Institute for Economic Research and Sackler Institute for Economic Research, February 1998.
Also: http://www.tinbergen.nl/discussionpapers/98112.pdf
Cohort(s): NLSY79
Publisher: Eitan Berglas School of Economics
Keyword(s): Benefits, Fringe; Discrimination, Employer; Discrimination, Racial/Ethnic; Economics of Discrimination; Economics of Gender; Economics of Minorities; Human Capital; Labor Market Demographics; Modeling; Quits; Retirement; Schooling; Skilled Workers; Training, Occupational; Unemployment; Wage Differentials; Wage Levels

Permission to reprint the abstract has not been received from the publisher.

In this paper we analyze an equilibrium search model with three sources for wage and unemployment differentials among workers with the same (observed) human capital, but different appearance (race): unobserved productivity (skill), search intensities and discrimination (Becker 1957) due to an appearance-based employer disutility factor. Because these sources affect the earnings distributions differently, empirical identification of these potential sources for the explanation of wage and unemployment differentials is possible. We show that the structural parameters of the model, including the firm's disutility from certain workers, are identifiable using standard labor market survey data. We demonstrate identification using data from the National Longitudinal Survey of Youth. Estimation of these parameters by matching moments from a sample of black and white high school graduates implies: a) blacks have a 9% lower productivity level than whites; b) the disutility factor in employer's preferences is 28% of the white's productivity level; and c) 53% of firms have a disutility factor in their utility towards blacks. (Copies available from: The Eitan Berglas School of Economics, Tel Aviv University, Tel Aviv 69978, Israel. Website: econ.tau.ac.il. No charge. COPYRIGHT: This record is part of the Abstracts of Working Papers in Economics (AWPE) Database, copyright (c) 1997 Cambridge University Press.)
Bibliography Citation
Bowlus, Audra Jann and Zvi Eckstein. "Discrimination and Skill Differences in an Equilibrium Search Model." Working Paper 04/98, Tel Aviv, Israel, Foerder Institute for Economic Research and Sackler Institute for Economic Research, February 1998.