| Publications [#237874] of Peter S. Arcidiacono
search www.econ.duke.edu.Papers Accepted
- Arcidiacono, P, The dynamic implications of search discrimination,
Journal of Public Economics, vol. 87 no. 7-8
(August, 2003),
pp. 1681-1706, Elsevier BV [doi]
(last updated on 2024/04/23)
Abstract: Blacks have both lower employment rates and lower earnings than whites. Further, the earnings gap increases as workers age. This paper focuses on explaining differences in black/white earnings profiles and how government interventions work in a dynamic environment. Three contributions are made. Firstly, multiple equilibria may exist solely because of a coordination failure by firms. Even without taste discrimination, blacks may play no role in their poor labor market outcomes. Secondly, search discrimination leads to economic discrimination against the non-discriminated group (reverse discrimination). Finally, in response to a quota program, whites may find it optimal to subsidize black investment. © 2002 Elsevier B.V. All rights reserved.
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