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An alternative to statistical discrimination theory

Ariane Szafarz
- 20 Apr 2008 - 
- Vol. 10, Iss: 5, pp 1-6
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TLDR
In this article, a new representation of discrimination on the job market based on the most recent findings in the socio-psychological academic literature about human behaviour is proposed, where it is assumed that the agents prefer working with people like themselves.
Abstract
This paper offers a new representation of discrimination on the job market based on the most recent findings in the socio-psychological academic literature about human behaviour. Put it simply, it is assumed that the agents prefer working with people like themselves. This "affinity" principle is modelled through a distance between an individual (the candidate for a job) and the staff of the firm. Contrary to the classical view according to which discrimination results from asymmetric information, this new model provides a rationale for the presence of discriminative attitudes on the job market even when full information is available on the skill levels of all candidates for a working position.

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Journal ArticleDOI

Microfinance and Gender: Is There a Glass Ceiling on Loan Size?

TL;DR: In this paper, the optimal loan size fixed by a gender-biased lender, depending on the borrower's creditworthiness and the intensity of the lender's bias, was determined by a model and tested on an exceptional database comprising 34,000 loan applications from a Brazilian microfinance institution.
Posted Content

The Modern Corporation as a Safe Haven for Taste-Based Discrimination: An Agency Model of Hiring Decisions

TL;DR: This paper proposed a principal-agent model of labour market discrimination, where the firm manager is a taste-based discriminator and has to make unobservable hiring decisions that determine the shareholders' profits.
Journal ArticleDOI

The Modern Corporation as a Safe Haven for Taste-Based Discrimination: An Agency Model of Hiring Decisions

TL;DR: This article proposed a principal-agent model of labour market discrimination, where the firm manager is a taste-based discriminator and has to make unobservable hiring decisions that determine the shareholders' profits.
References
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Book

The Economics of Discrimination

TL;DR: The second edition of "The Economics of Discrimination" has been expanded to include three further discussions of the problem and an entirely new introduction which considers contributions made by others in recent years and some of the more important problems remaining as discussed by the authors.
Posted Content

The Statistical Theory of Racism and Sexism.

TL;DR: The theory of racial and sexual discrimination in the labor market was first introduced by Arrow as mentioned in this paper, who introduced the Inflation Policy and Unemployment Theory (INPT) and introduced the first formalization of the theory in terms of exact statistical models.
Journal ArticleDOI

Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination

TL;DR: The authors study race in the labor market by sending fictitious resumes to help-wanted ads in Boston and Chicago newspapers and find that white names receive 50 percent more callbacks for interviews than African-Americans.

economics of discrimination

TL;DR: The second edition of The Economics of Discrimination has been expanded to include three further discussions of the problem and an entirely new introduction which considers the contributions made by others in recent years and some of the more important problems remaining.