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Racial Discrimination in the Labor Market: Theory and Empirics
Abstract
We review theories of race discrimination in the labor market. Taste-based models can generate wage and unemployment duration differentials when combined with either random or directed search even when strong prejudice is not widespread, but no existing model explains the unemployment rate differential. Models of statistical discrimination based on differential observability of productivity across races can explain the pattern and magnitudes of wage differentials but do not address employment and unemployment. At their current state of development, models of statistical discrimination based on rational stereotypes have little empirical content. It is plausible that models combining elements of the search models with statistical discrimination could fit the data. We suggest possible avenues to be pursued and comment briefly on the implication of existing theory for public policy. (JEL J15, J31, J64, J71)
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Cited by
Experimental research on labor market discrimination
Neumark, D. (2018) · Journal of Economic Literature · doi:10.1257/jel.20161309 · Cited by 529
A multidisciplinary survey on discrimination analysis
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Race Discrimination: An Economic Perspective
Lang, K., & Spitzer, A. K.-L. (2020) · Journal of Economic Perspectives · doi:10.1257/jep.34.2.68 · Cited by 220
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How Race and Unemployment Shape Labor Market Opportunities: Additive, Amplified, or Muted Effects?
Pedulla, D. S. (2018) · Social Forces · doi:10.1093/sf/soy002 · Cited by 82
Metadata
- Authors
- Lang, K., & Lehmann, J.-Y. K.
- Venue
- Journal of Economic Literature
- Publisher
- American Economic Association
- Published
- 2012-12-01
- Volume
- 50
- Issue
- 4
- Pages
- 959-1006
- ISSN
- 0022-0515 (ISSN-L)
- OpenAlex
- W2104413756
- Cited by
- 371
- References
- 105
- FWCI
- 57.10
- Type
- journal article
- Language
- en
- Open access
- closed
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