Identification, screening and stereotyping in labour market discrimination
TLDR
In this article, a microeconomic model of hiring and pay decisions by an employer is presented, where the authors integrate both responses in a model of uncertainty in decision-making, leading to less stereotyping of people and hence less discrimination, and social identification with an ingroup, inducing more reliance on stereotypic perceptions and prejudices, and hence more discrimination against an outgroup.Abstract:
According to social-psychological research, feelings of uncertainty in decision-making evoke two opposite responses: (i) reduction of uncertainty by information search, leading to less stereotyping of people, and hence less discrimination; (ii) social identification with an ingroup, inducing more reliance on stereotypic perceptions and prejudices, and hence more discrimination against an outgroup. We integrate both responses in a microeconomic model of hiring and pay decisions by an employer. Increasing competition in the product market makes the employer feel more uncertain about his profits, but also raises the opportunity cost of screening expenditures. This elicits substitution of ingroup identification for screening expenditures, and hence enhances discrimination.read more
Citations
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Does Competition Destroy Ethical Behavior
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Employers and migration in low‐skilled services in Dublin
TL;DR: In this article, the authors analyse the role of employers as "institutional" factors in the creation of segmentation in the labour market, focusing on the sectors of catering, cleaning and security as low-skilled service sector providers.
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Nationalism, cognitive ability, and interpersonal relations
TL;DR: The authors developed a model of how those judgments form based on a theory of symbolic values, which depicts the interaction between two values, one associated with an inherited ethnic trait (nationality) and one with an endogenous achievement trait (income) and found that individuals with lower cognitive ability are predicted to invest more value on nationalism and to have hostile relations with immigrants.
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Welfare to work and subjective well-being: Evidence from a randomized control trial
TL;DR: This article examined the effect of transitioning from welfare to full-time employment on a variety of measures of subjective well-being for a sample of long-term welfare recipients in British Columbia and New Brunswick who participated in the Self-Sufficiency Project (SSP).
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Wage discrimination and antidiscrimination policy in unionized industries
Minas Vlassis,Nick Drydakis +1 more
TL;DR: In this article, the authors consider industries where the equally skilled workers/members of firm-specific monopoly unions can be grouped according to different reservation wages, and they show that, in absence of active antidiscrimination policy, discriminatory wage contracts across groups of employees may emerge, in equilibrium, under either oligopoly or a perfectly competitive product market.
References
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Book ChapterDOI
Chapter 48 Race and gender in the labor market
TL;DR: The authors summarizes recent research in economics that investigates differentials by race and gender in the labor market, including recent extensions of taste-based theories, theories of occupational exclusion, and theories of statistical discrimination.
Book ChapterDOI
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Emotions, Arousal, and Stereotypic Judgments: A Heuristic Model of Affect and Stereotyping
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Journal ArticleDOI
Culture, Information, and Screening Discrimination
Bradford Cornell,Ivo Welch +1 more
TL;DR: The authors show that discrimination can occur even when it is common knowledge that underlying group characteristics do not differ and when employers do not prefer same-group candidates, when candidates belong to the same group and hire the best prospect from a large pool of applicants, the top applicant is likely to have the same background as the employer.